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Any overseas buyers investing in Australia?

Discussion in 'Property Finance' started by TheDoor, 28th Jan, 2016.

  1. TheDoor

    TheDoor Member

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    Location:
    USA
    I am an Australian Citizen living overseas considering purchasing a property in Australia. Partially, for investment, but also because I may be returning to Australia in the future.

    From my reading on sommersoft and online in general I understand there are potential financial consequences to investing overseas, such as owing capital gains tax to ATO for any foreign properties and tax consequences of wiring savings into Australia. I have many questions, but my current one is related to property financing.

    Does anyone know if it is possible for foreign buyers to purchase Australian properties with financing from a foreign bank? Avoiding the need to transfer downpayment into australia.

    I am happy to pay my legal tax responsibilities; I just do not want to inadvertently increase my tax responsibilities due to lack of planning.

    Side note: I am considering moving USD to AUD through a HSBC or citibank international account for the down payment to take advantage of current exchange rate. Maybe I could finance australian property through either HSBC or citibank...

    If anyone has any experience or resources that might apply to my situation I would appreciate it.
     
  2. melbournian

    melbournian Well-Known Member

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    ANZ Singapore or do a search for local singaporean banks that do that (only for foreigners and non-PR.
     
  3. TheDoor

    TheDoor Member

    Joined:
    27th Jan, 2016
    Posts:
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    Thanks found this

    About ANZ Signature Priority Banking | ANZ Singapore

    "ANZ Signature Priority Banking delivers wealth management solutions to our customers based outside of Singapore. With its well-established financial industry with flexible regulatory framework and a tax-friendly environment, Singapore proves to be a reliable venue to nurture your wealth."

    and

    "Maintain your funds in a currency of your choice with our foreign currency statement accounts available in major currencies"

    and

    "To start an ANZ Signature Priority Banking relationship, you will need to have a minimum Assets Under Administration* (AUA) of S$150,000."
     
    Last edited by a moderator: 30th Jan, 2016
  4. TheDoor

    TheDoor Member

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    This is a follow-up for other who may stumble across this thread with a similar question.

    ANZ singapore and possibly most Non-US banks will not open accounts to US citizens or persons submitting a US tax return. It is something to do with banks staying compliant with FATCA.

    Basically people opening ANZ singapore international account have to complete a W8Ben Form to be eligible to open the account (US citizens and people submitting US tax returns cannot complete the form).

    More info here

    Understanding Form W-8BEN and Form W-9 in the Brave New FATCA World » Let's Talk About: US Tax
     
  5. melbournian

    melbournian Well-Known Member

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    What is it are u trying to achieve ? If u are an Australian citizen u would not qualify. But if u have a business then yes there is ways ard it. Most ppl in Asia do by opening a shell company deposit funds in there then apply to get a ANZ home loan for like 1-2%.
     
  6. TheDoor

    TheDoor Member

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    Thanks Melbournian for trying to help, but I cannot say that I am exactly clear on what I am trying to do. Mostly, just trying to get information, I am basically a novice.

    I am an Australian Citizen, living and working in the US. I am trying to learn about buying property in australia because we are considering a return to australia. Think of this purchase as me buying my future retirement home, that I would rent out in the meantime.

    All my funds are in the US and I am trying to figure out the best way to make a purchase while still living and working in the US.
     
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Typically at 70 % lvr with a margin call type clause .

    Bit less of an issue now with the AUD a lttle lower but still an issue.

    If you have heaps of buffer this type of product can work well, if you are tight it can cost you a bunch


    ta
    rolf
     
  8. Casteller

    Casteller Well-Known Member

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    True - US citizens and green card holders are like the plague to most international banks. I get regular demands from bank accounts in Europe wanting to verify I am not connected to the US tax system in any way, or else they will close all accounts.