Hi All,
I have started sourcing my own property and want to know what options i have in terms of obtaining finance for my first deal.
I arrived in Sydney just over a month ago and I'm a Permanent Resident.
The investment property I'm looking at buying is in the region of $150 000. Currently, most of my cash it tied up in property in South Africa. I could get access to these funds, but I'm just looking at options without having to take funds out my South African portfolio.
With regards to purchasing this $150 000 property, what would be the break down of costs associated with the purchase and is it possible to get a 100% loan for your first property purchase (FHOG)?
When i first started investing in South Africa, my first 4 properties were bought with 100% bonds (no deposits required), so i'm just wondering if the same is possible in Australia?
Look forward to hearing from you.
Regards,
RobbieHave you got a job yet Robbie?
If not, maybe you could supply proof of income from South Africa. Without this you will find it extremely difficult to obtain finance I think.
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
Hi,
Started working the day after i arrived in Sydney.
I would be able to give more details offline, pm or email?
Please let me know if you can assist.
Thanks,
RobbieSorry Robbie I am no longer a broker so can't really assist.
It may be difficult to get a high LVR such as 90 or 95% with such a short period of employment, but if you are working in the same industry as in SA it may help.
In Australia you will find all of the loans (from banks at least) are mortgage insured at amounts over 80% LVR. There are only 2 major mortgage insurers and these are the same no matter which bank you go to. As such the banks will all have similar policies for loans over 80% LVR.
The problem with originators is that all their loans are mortgage insured. Another problem is that getting increases down the track may be a problem as well as potentially high exit fees.
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
Hi RobbieP,
The FHOG is also only available for first time home buyers who will live in the property, not for investment property.
It would be kind of difficult to prove you're living in it if you're working in Sydney and the property is in Timbukto, if you get my drift.
I can certainly relate to your eagerness to get started. Never a dull moment.
Angel.
Thanks for the advice..
But if you dont own a home in Aus and you currently renting, surely it would be pretty simple to prove that this first property purchased is going to be your primary residence?
For example, if you still had an lease you needed to honour, which still had another 6 months, could you not prove that you planned to move into your new property when your current lease is up? And if after a short while of staying in the property you decided you would rather rent due to change in circumstance, how would this affect your FHOG?
My next question is.. if you could not use your FHOG on your 1st investment property, could you still use your FHOG for your 2nd property which was your primary residence? Surely not?
Yes Robbie you still qualify for the FHOG if you buy 10 IP's first and the 11th is your PPOR assuming you have never owned a PPOR.
Doesnt make any difference whether you have a Lease on your rental property or not the law requires you to occupy the property for 6 continous months commencing within the first 12 months. If the property is tenanted and it means you cant move in for 10 months then that is fine.
Only thing you need to bear in mind about buying an IP first is you will loose the Stamp Duty discount / exemption on most States.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Richard, make sense.
Another question..
What is the mortgage term you can take out with the banks?
In South Africa we were able to get 30 year mortgages.
Whats the maximum mortgage loan term in Austrlia?
Maximum is 40 years but in saying that limited to a couple of lenders.
25-30 is the norm.
Although of course on an interest only term the length of the loan is imaterial.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
The investment property I'm looking at buying is in the region of $150 000.
Robbie are you looking to purchase in a regional area. At $150,000 I am curious where you are going to invest. From just a due diligence point of view it may be wise to do a bit more digging around into the location of your investment if you have only been here for just over a month.
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