NMD deals in OZ

Viewing 9 posts - 1 through 9 (of 9 total)

Jimi
Member
@jimi
Join Date: 2006
Post Count: 6
May 11, 2006 - 1:15 pm
Hi everyone,
Im new to this board and Im a resident in the UK. I run a successful property company buying below market value properties in the UK. When I buy a property I usually buy on an 85%loan to value mortgage and remortgage immediately. This allows me to buy property usually at 20-25% BMV with no money down and often means I have surplus cash after buying a property.
My question is, is this possible in OZ. Do banks offer immediate remortgages. Does the below market value strategy work with NMD (no money down). Also, how difficult is it for ex-pats to get access to this type of finance. Your help will be greatly appreciated. Happy to answer any questions on the UK.
Cheers
Jimi
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
May 11, 2006 - 1:39 pm
Sure, buy your property, settle, ask for a increase. If they say no, just go to another bank.
Terryw
Discover Home Loans
Parramatta
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Jimi
Member
@jimi
Join Date: 2006
Post Count: 6
May 11, 2006 - 1:45 pm
Thanks Terry,
So as an example if I buy a property worth 200k for 160k I can then ask my bank to advance the extra 40k in equity. Is their any time restrictions on this i.e would I have to own the property for a certain amount of time before getting the advance.
Thanks
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
May 12, 2006 - 2:08 am
Generally you will only get up to 90% of the value. Most lenders will want you to wait 3 months before an increase. It is actually the mortgage insurers. But if you were to go to a new bank, then you could get up to 90%, sometimes 95% on a refinance.
Terryw
Discover Home Loans
Parramatta
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
May 12, 2006 - 3:03 am
Jimi
Terry has touched upon a few answers on remortgaging so there is no need to go there again.
LVR issues may occur if you are a non resident and are not an Australian Citizen. You may require FIBR approval to be able to purchase over here in the first place.
I have a dual passport but originally a British Citizen with PR in Aus and do exactly what you do to great effect.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
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Ph: 07-3720 1888
Richard Taylor | Australia's leading private lender
Jimi
Member
@jimi
Join Date: 2006
Post Count: 6
May 18, 2006 - 5:18 pm
Richard,
Encouraging to know that your making a success of the business. Not sure I understand the acronyms though. Whats LVR and FIBR. Do you think there would be some issues with me getting financing in the early stages? Im so jealous of people with dual nationality [thumbsup2]
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
May 18, 2006 - 11:17 pm
Hi Jimi
With apologies. Slipped into a bit of Aussie slang comes of being here for 13 years.
LVR- Loan to Valuation Ratio
FIRB – Foreign Investment Review Board
http://www.firb.gov.au/content/default.asp
This link may help you a little.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888
Richard Taylor | Australia's leading private lender
Anitamarshall
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@anitamarshall
Join Date: 2005
Post Count: 79
May 20, 2006 - 12:09 pm
My understanding is that a lot of lenders will only lend 80% for overseas residents however ANZ do have a product which may suit you needs – i beleive they will go up to 95%…………
As for the refinance/increase in debt – it might be hard to find a valuer to value it above the recent purchase price – the valuers are extremely conservative here at the moment so I wouldnt count on being able to do that easily however I guess anything is possible.
Anita Marshall
Advanced Finance Solutions
http://www.advancedfinance.com.au
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Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
May 22, 2006 - 1:26 pm
Anita
Jimi is an overseas resident not an Australian living abroad so the Anz Bank product would not be any use to him.
In saying if he was 95% + is available with a couple of other lenders.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 7.14%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888
Richard Taylor | Australia's leading private lender