overseas investment property

Discussion in 'Loans & Mortgage Brokers' started by JCC, 18th Oct, 2018.

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  1. JCC

    JCC Member

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    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)
     
    JCC, 18th Oct, 2018
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    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.
     
    Terry_w, 18th Oct, 2018
    #2
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    CBA would be a sweet spot for this

    3.12 over remaining term of 25 years ? ?

    ta
    rolf
     
    Rolf Latham, 18th Oct, 2018
    #3
    Property Twins likes this.
  4. luce.rocks

    luce.rocks Well-Known Member

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    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?
     
    luce.rocks, 19th Oct, 2018
    #4
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    typically

    yes

    But many moving parts

    ta

    rolf
     
    Rolf Latham, 20th Oct, 2018
    #5
  6. luce.rocks

    luce.rocks Well-Known Member

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    Interesting. Thanks Rolf! Hope you're well :)
     
    luce.rocks, 20th Oct, 2018
    #6
  7. JCC

    JCC Member

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    much appreciated all
     
    JCC, 25th Oct, 2018
    #7