Foriegn investment in property

This just in. I think if one bank starts, they will all follow suit..eventually.
How much will it deter forwign buyers?

ANZ Bank closes doors on foreign property investors -

 

Hopefully enough to make a difference.....

Im not holding my breath though. Methinks many foreign buyers paying cash anyway.

 

It will make no difference IMO. Foreign banks are planning expansions into the market.

RBA warns of ‘aggressive expansion’ by foreign lenders

 

Yes ok. I hope foreigb banks are more entrenched in the market-should introduce some much needed competition for the mexican banks.

 

ANZ in singapore and many other banks offers home loans to foreigners to purchase property in Australia at 0.99-1.99%. Most foreigners who do take loans take loans from overseas.

 

@terryw As a Singapore citizen myself, will there be any issues from me borrowing money from ANZ SG to buy a house here? Possible PPOR hehe

 

I had quite an opposite experience about borrowing from Singapore 2010-11 (approx), I did sit with the mortgage provider (bank) at Changi airport and asked what I need to do to borrow from Singapore to invest in Australia. He made a few calls and was very explicit in his reply 'We do not lend for Australian Property too risky'. The strategy he advised was to buy a property in Singapore and then use that as a collateral for Australian Mortgage.
Maybe it was a different bank (HSBC) or maybe policies have changed its been 6 years.
Can you please share some more information ?

 

it depends if you are a singaporean, malaysian, australian, american etc and also if you have interests overseas but pretty sure it was ANZ as below. there is also HSBC, OCBC and other foreign banks. Nobody borrows money from aus banks as the Interest rates are not competitive if you can access these banks overseas (subject to forex risk). Hence you can understand why overseas buyers can go higher when bidding.

 

Thanks
I understand the low interests and foreigners buying here and that was why I had queried Singapore. Are they willing to lend against Australian Collateral ?

 

best to enquire as each circumstances are different for everyone. Many people also buy using holding companies as you can borrow more overseas using that.

 

Yup. despite supposedly 'cheap credit' conditions we have here...its still well above the likely competition.

 

Shawn :

I think you can try NAB Singapore, look for Andrew Chua or OCBC (don't know who to look for). They seems to be most lenient in lending, the rest of banks being more stringent in rules. But do not be hopeful in getting low interest rates now. I think all in, it is around 3%+ now, not very much lower if compared to Australian banks which stands at around 4%+ if you take a fixed loan.

Moreover Singapore based banks are very prudent in lending now also. You need to borrow at least A$500,000, have good income and you can only buy in selected cities like Sydney, Perth and Melbourne. Even in these cities, they only lend if you buy in certain "safe" areas. Forget about borrowing if you buy in the country towns, or even the other capital cities like Hobart, Darwin and Canberra.

In short, it is not as easy to borrow from Singapore banks nowadays. Gone are the days of easy or cheap credit.