overseas investment property

Discussion in 'Property Finance' started by JCC, 18th Oct, 2018.

Join Australia's most dynamic and respected property investment community
  1. JCC

    JCC Member

    Joined:
    26th Jul, 2018
    Posts:
    12
    Location:
    Overseas
    Assuming one is a professional overseas expat (Hong Kong) with a positively geared investment property located overseas

    how would banks take this into account if i wanted to borrow for an IP in australia?

    would it hurt or help servicability? (main income is from professional job)

    would the debt still be assessed at 7%+?

    example
    hk interest rate = 2.4%
    hk property value = 1.1m aud (500k aud is mortgage)
    gross rental = 43k (after tax = 36k)
    yearly repayments = 26k mortgage (other expenses are less than 1k)
     
  2. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

    Joined:
    18th Jun, 2015
    Posts:
    18,774
    Location:
    Remote
    the debt and income would be assessed as usual, after converting to AUD. Depending on the bank the interest rate may be existing plus a margin (not sure about this off top of head) or at the benchmark rate.
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    4,416
    Location:
    Gold Coast
    CBA would be a sweet spot for this

    3.12 over remaining term of 25 years ? ?

    ta
    rolf
     
    Property Twins likes this.
  4. luce.rocks

    luce.rocks Active Member

    Joined:
    29th Jun, 2015
    Posts:
    27
    Location:
    Spain
    Just found this thread. So, is foreign rental income possibly better than foreign business income in terms of getting finance in Australia to buy in Australia?
     
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    4,416
    Location:
    Gold Coast
    typically

    yes

    But many moving parts

    ta

    rolf
     
  6. luce.rocks

    luce.rocks Active Member

    Joined:
    29th Jun, 2015
    Posts:
    27
    Location:
    Spain
    Interesting. Thanks Rolf! Hope you're well :)
     
  7. JCC

    JCC Member

    Joined:
    26th Jul, 2018
    Posts:
    12
    Location:
    Overseas
    much appreciated all