Finance for US resident

Hi Mortgage brokers,

If someone in US want to buy property in Brisbane which is almost cashflow neutral or positive, how does finance works currently? Normally how much bank will lend them in terms of LVR? Any small vendor who can lend at higher LVR?

With Regards,
Rooky

 

Hi @Rooky

Are you an Australian Permanent Resident or Australian Citizen?

If yes, then you do have the option of borrowing. Some lenders will go up to 88% + LMI for an investment property (assuming you are earning in USD).

Your PAYG income will be shaded by a percentage specified by the relevant lender. Additionally, the lender may specify FX rates at which income is to be converted to, which tends to be not as generous as XE FX website.

If you are self-employed, in my experience, there is little to no chance.

What LVR are you looking at?

 

Thanks PT.

This is for someone who is not Australian Permanent Resident. How does finance works for foreign national ? Regulatory approval required which i m aware but want to know how much LVR maximum bank will lend ?

 

Hi @Rooky
Finance for foreign nationals (also based overseas) has pretty much disappeared in recent times.

 

Thanks Rolf.

How much low lvr and how much high int rate ?

 

Hi Rocky

We run our own Non resident funding program warehoused thru a major european lender.

Probably looking at circa 60% lvr if it is a Unit and a rate of 6.95% variable.

Feel free to drop me a line if you want any further details.

 

Are you aware that you no longer get capital gains discounts buying in Australia?

That means when you sell it you'll probably be paying tax of 41c in the dollar on the profits?

(so instead of making 7%pa you are actually only making about 4%.....- eg its a pretty big deal and the reason a lot of expats/foreign nationals no longer purchase in Australia)

 

Is that a gun in your pocket or are you just happy to see me?

6.95% variable - What a joke

 

Tell me where you go Dean to get a more competitive rate.

Given there is NO major lenders in the market it is a matter of supply and demand.

 

Hi

Marietta is right - it is almost impossible to get loans from Aussie banks to foreign nationals now except for loans sourced out of overseas banks. Most of these are above normal Australian banks - unless you go through an overseas bank and have a good record and relationship with them eg HSBC.

Steve