Overseas income advice

I’m trying to get a loan for a new investment property.

I have 20% deposit via cash or equity in an existing property I own.

Can anyone recommend a lender who would accept someone who has:

Overseas income and is self employed?

 

Will be difficult, but CBA are generally one of the better ones for overseas income.

 

Where is the income paid to?
An Australian acct?

Blacky

 

My overseas income is paid into an overseas account.

Im currently living overseas, but am an Australian citizen. As mentioned, I have existing loan and property in NSW.

Can anyone recommend someone who can help me with this?

 

From experience this won’t be easy.

Max LVR May be 70-80%.
Income will be ‘shadded’ to 80% based on today’s conversion, and often then tax is also calculated (regardless if you are non-resident for tax purposes, and therefore not paying Aus tax on the OS income.
Then normal living costs are applied (in my case all living costs were covered by company, so I was living off very little)

In the end I think one bank calculated my income down to about 40% of what it actually was. As a result my borrowing capacity was less than my unemployed sister... go figure.

I would recommend one of two actions.
Either a) go direct to CBA private bank (if you qualify). CBA seem to have the best policies for non-residents.
Or b) go to a good broker with an understanding of non-resident lending.

Blacky

 

There are a number of lenders that can assist and you can technically go to 90% LVR.

Income is going to be shaded to 80% of the converted income and a couple of lenders of 90% of the converted income.

The big thing is going to be currency - what currency is it?

CBA are a good lender but their currency list is small - there are other lenders that are better.

 

Why would you want to?

As a non Australian resident the ATO is charging 41%-45% LTCG tax?

Just doesn't make any sense to invest in Australian property as an asset class on this basis.

 

do you need to be a customer of CBA already (for a period of time also) to be able to be able to then take a loan with CBA?

From my perspective, the LTCG is not ideal but dependent on how long you plan to be a 'non resident' for (from the purchase date) and whether you ever plan to sell the investment will impact on how much it really makes a difference (as a basis to exclude property as an investment class)

 

This would be applicable only if I sold the property right?

What would you suggest as an alternative Dean (noticed you're located in NYC.)

 

Are you self employed in Australia or overseas?

If overseas, you'll find it extremely difficult. If you're SE in Australia you'll have more options, just depends how tight servicing is.

 

are you an existing client with any Australian bank already, or bank OS with a well known international bank who may have operations in Oz? eg Citi, HSBC, Macquarie etc?