Non resident Australian seeking finance

Hi All
I am a non resident Australian currently living and working overseas on a yacht.
I have just purchased an investment property on the Gold Coast and have paid the deposit.
There was one other bidder involved and to get it over the line, I offered unconditional .
I was confident in my ability to get financing as I have cash reserves and a reasonable income.
It has been one month now and the banks I have tried with are struggling with various things, namely accepting that I don't have any living expenses and am not a tax resident anywhere. Settlement is in one month and with a 10% deposit on the line , I am getting decidedly nervous.
The purchase price is 1,250,000. A 5br house.
I currently have applications with 3 banks .
One bank is concerned about my lack of living expenses.
The other 2 keep requesting more and more docs which is really slowing the process down.
Any of you guys out there had anything similar ?
Any advice from brokers, bankers or other investors would be greatly appreciated.
I have posted this in both sub forums as I was sure which was best .
Thank you all.

 

No living expenses and not a tax resident anywhere....

Your going to struggle.

You do have living expenses, unless your a breatharian. Or are you just eating fish you catch? No lemons?

If you don't lodge tax returns anywhere it's going to be hard.

Lenders need to see how much you earn, and if your self employed, that's tax returns.

There might be some 'private' lenders, or loan sharks that need a return on the cash they haven't declared in their tax returns that might help?

 

But seriously, self employed overseas residents are very difficult to place at the moment.

Most lenders have specifically excluded overseas self employed income, even with tax returns.

 

Might be a matter of looking at a coded Private Loan but isn't going to be cheap.

Guess it all boils down to how much you want to retain the deposit.

 

Hi Tobe, I am employed by a company but not a tax resident anywhere. i have a letter of employment, employment contract and statement from employer showing that all living expenses are covered by my employer. i have given these to the banks. i guess i dont fit the usual pro forma.
one bank is insisting on applying a set minimum living expenses total to my salary which is a bit frustrating as im being held to a false figure, when my bank statements clearly show my expenditure is nowhere near that figure

 

i

m looking for a 70% LVR , Rolf. property has been valued at approximately purchase price

 

You can't get around the living expenses. What currency are you paid in?

 

Depending on the currency, there are quite a few lenders that will look at this. They will apply living expenses, they will shade currency conversion to 80% of your gross income and then they will apply Australian payg tax rates. they then input that net figure into their capacity calculator.

 

OK thank you for clarifying that tobe. Im paid in euros

 

Hi Munga

You wouldn't happen to be an ironman triathlete?

 

If you're an Aussie citizen, paid in Euros, 70% LVR and can clearly demonstrate the regular income sufficient to meet the lenders criteria, this really isn't that difficult.

The biggest hurdle is usually proving income to the banks satisfaction.
* 3 months payslips.
* 3 months bank statements showing corresponding salary deposits.

 

I agree with Peter
Provided your income is sufficient to meet calculated living and servicing.

Remembering most banks will take your income @current Exchange rates less 20%. Throw in a figure for living costs (real or not) or somethingbup to about $50k.

My only other question would be are you really a non-resident for tax purposes? By the sounds of it you have not established yourself overseas - if you don't have a permanent address?
Just a question.

Also be aware that lodging a lot of applications with different banks may not be in your best interests.

In my experience CBA had a decent servicing calc for non residents.

Blacky

 

Ok, so what happens when they apply their figure? (Standard practice). Does that mean you can't service the loan then?

 

Cutting to the bone by needing to exclude any living expense figure? That's way too close.

In the end lenders need to look at what the average person and you specifically are doing - and take the higher cost figure. Otherwise people could easily manipulate the figures and get themselves into strife.

You've otherwise had some good advice in here. Applying for three banks simultaneously is a great way to trash your credit file, should have gone to a professional to ensure the right lender and calculator was used from day 1 than rolling the dice.