Hi everyone.
Me and my wife have been in Australia for about 5 years. She has a sponsorship visa and works as a graphic designer (earning 42k$ plus a 5-8k$ annual bonus) and I've just finished 5 years of studies and now am working temporarily as a cleaner part-time.
We have been told that for us to be able to buy a house we need a 20% deposit and on a house in the 300k$ that would be 60k$. Unfortunately we've both been studying a while and my wife got sponsored last year and have another year to go on her sponsorship. She has been offered to renew it but we have decided to move to Spain around March next year.
What we want to do is to buy a property and fix it up/renovate and sell for a profit. Maybe even this two or three times over the next 12 months but this seems to be impossible as we're not permanent residents.
Is there a way for us to loan 100% somewhere? Or get a 20% loan from someone/somewhere and then get the 80% from a "regular" bank?
I have talked to 3 different brokers and they all say I need the deposit but then I've heard about people doing vendor financed deals or OPM loans (Other peoples money).
Can someone shed some light on this? Or better yet point me in the right direction. Or even better still… lend me the money?
And also does anyone know a bank who will give a non permanent resident a credit card?
Thank you all for your time and help!!
It is no longer possible to get 100% loans, not even for permanent residents. Lenders will also not lend if they know you are borrowing the deposit, such as in vendor financing.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
As Terry has mentioned 100% loans are a thing of the past and after Westpac announced the withdrawal of their 95% LVR yesterday that leaves only NAB out of the majors who will consider more than 90%. (I am advised that NAB will withdraw their product within the week).
As a non resident regretfully what you have told is correct with a maximum borrowing of 80% subject to evidence of deposit.
Richard Taylor | Australia's leading private lender
So that is final? I have to come up with 60k$ just to buy a flat in my area? That would mean I have to save 1000$ a month for 6 years and then the house prices would almost have doubled again so I would need 120K$. And I had to save another 6 years. And then I would need 240K$ but I would only have 120K$… And then I would have to save 1000$ for 12 years to save for a deposit… Well you see my point
There has to be a way around the 20% deposit otherwise I will never be able to afford a house.
Regretfully not unless you can get a private unsecured loan for 20% that you can deposit into your savings account prior to making an application for finance.
Even if you were a resident you are requiring 10% deposit in most cases for a financier to consider the deal and 5% of that needs to be genuine savings.
Richard Taylor | Australia's leading private lender
Would it be possible to get a 80% loan of the estimated house? Or is it the actual purchase price you can get 80% of?
If I found a house and I bought it for under 80% of its value would I be able to get the whole purchase prize?
Or would a deferred payment of say 2 months work? That way I could buy a house in need of some renovations
and fix it up and have it valuated again. And if that valuation would be 20% over the purchase price would I be able to
borrow the whole purchase price from the bank?And what if I bought a house with a granny flat or a room that I would rent out. Would that make a difference to the
possibility of a loan?I'm just trying to find ways to secure a loan for a no money or very little money down mortgage. We really want
to get a house that we can fix up and possibly sell for a profit in a year. Especially now when our landlord called
and told us she is pushing the rent up from 240$ to 350$… insanity!! And it seems impossible to find a place to rent if you have a dog.Any help is appreciated.
C
maybe look at vendor finance?
Also I think there are rules on how much increase in rent the landlord can pass on – would be worth investigating?
We have pets – so I do understand how difficult it can be to find rental properties, where we rent in a group of 13 flats – we are the only ones with a dog and the first the landlord has allowed. Hopefully we have demonstrated that they are worth considering..
We allow our tenant to have a cat and dog, that are indoors/outdoors, the property has tiles, floorboards – but I would be worried about larger/younger dogs with potential damageIf the 2:nd poster is correct banks don't lend if you get vendor financing anymore. Is this true or does it depend?
We have tried to get a rental for about 3 months now applied for about 10-12 apartments and applied with a
pet rental agreement and a small resume for our dog and it seems like they pick people without dogs just to play it safe.
We have never had problems getting a rental before and we have moved around 6 times in the last 5 years and
probably looked at 200 apartments in that time.We have mainly applied to a bit older properties with courtyards but still no luck and now I think it's a lot better if we just
found a way to buy a house we could fix up and sell in a year as we are moving to Spain and we really need to get some
money together for that.No lenders will not be prepared to lend where your deposit is coming from vendor finance these days.
Richard Taylor | Australia's leading private lender
You are certainly not alone! It is getting harder and harder to get a loan through the banks!
I can probably help you out with vendor finance through a rent-to-buy system. If you want to discuss this further please email me on [email protected] and I'll access your current situation and see if we can work something out. I know how hard it can be!! Someone gave me a much needed step up a few years ago and now it's great to do the same for others.
Cheers
Emma
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