I am an Australian resident and have a PPOR in Australia. I have build up some good equity with my PPOR and wish to leverage it for buying property overseas (India). E.g Overseas investment property is $100K. I plan to give $20K as deposit from my savings and for the remaining $80k, I plan to first withdraw money from PPOR equity and then remit it to overseas. Also, I plan to take interest only loan for PPOR equity
My Question
1. Will financial institution/banks allow to use their loan amount for Overseas investments without knowing details about the overseas investment?
2. Will ATO consider this loan and property for Negative gearining benfits?
3. Any other issues/risk involves in this kind of investment (apart of forex rate, remittance charges, Australian capital gain tax when i sell the overseas property)
Cheers
Manish
You can go to 80 or even 90% LVR on your PPOR or IPs with some banks and access the difference (cash out) between what you currently owe, subject to serviceability.
Purpose of funds need only be for "future investment purposes" which could include overseas property as the funds from the Aussie bank are secured against your Aussie property.
Issues to be aware of would be fraud in particular to who is the property ownership. You would have to have some knowledge of the property laws and/or a trusted advisor on the ground where you are intending to purchase.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
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