They are offering loans in Australia, to people living overseas. Not much help for an Auusie wanting to borrow against an asset located in a foreign country.

Rebates are commonly used by developers, particularly for presales, as they do not want the whole of the devlopment being valued at the price of a small percentage of the units.

There are lenders that realise this and will lend against the contract price, pre rebate.

Hi Prady,

LVR refers to leverage, the portion of the purchase that is funded from borrowings.

The additional 6% on a 106% lend is to pay for expenses that incured during the purchase.

The estimated funds required are for costs that you must cover yourself, in the case of a 100% loan this will include stamp duty, LMI etc. For the 95% lend…[Read more]

Prady,

The interest rate on 100% loans are not actually that high, you can access a wide range of loans at 95% LVR, some of which will allow you to capitalise mortgage insurance up to 97%. These include some of the lowest rate loans on the market.

Regards
Alistair

Allan,

Finance is possible, you would probably have to get a private lender involved though, to get the LVR down for the primary lender. I have a client who is in this situation currently, they are paying 22% for the private money portion.

Regards
Alistair

What is the amount they want to borrow and I’ll ask?

No I won’t, as my arrangement with them gives me somewhat of an advantage over commercial brokers. I don’t know if they would be of much interest to a full time broker in any case, as their referal fees are not very high. I should stress that such a rate is only possible with a very strong deal, ie 70% LVR or lower, blue chip tennant and long…[Read more]

Allan, anything is possible, but you would be looking at a pretty high rate.

Yes, they do a pretty thorough due diligence, although the process usually onmly takes a couple of days.

You should make sure that you can get finance for the deal and what sort of LVR is available.

Rob, you can get down to low 7’s at 70% LVR if the deal is strong enough. It is VERY dependent on the individual situation though.

Mabbott,

The people looking at upstate NY are doing so because of the very high rental yields that are available (20%+). There are quite a few pitfalls though. If you want to know more I suggest you havew a chat with Westan, you should be able to find his contact details if you do a search.

Regards
Alistair

The US is a very big market and trends are very different in different areas. Upstate New York, where a lot of people on this forum are currently looking, has had very little growth over a long period of time. Other markets have been booming.

Richierich,

If you’re set on positive cash flow properties, you may be best off looking offshore. There are a number of people on here who invest in New Zealand and a growing number in the US.

Some good people to speak to, who post on here are Nigel Kibel for New Zealand and Westan Johnson for the US, there are also others.

Regards
Alistair

cmhall,

If the Sydney property was a ppor you can keep the CGT free status for around 5 years (don’t hold me to this, check with an accountant). So it is quite possible you will not have to pay CGT.

Regards
Alistair

A 4 unit development is quite large for a starting point (I am assuming by your question that you haven’t developed before). Dveloping is a risky business and the larger the development thae bigger the risk, both on the upside and the down side.

If you do not have experience, please get yourself some high quality assistance. If you mention which…[Read more]

Leanne,

There are a few that post on this forum. I have had some dealings with one of them, Nigel Kibel, who posts here. He’s very knowledgeable and you could definately do worse than have a chat with him. I have also heard good things about Hunter House Hunters.

Regards
Alistair

Nigel Kibel, who posts on here, knows quite a bit about structures in NZ for Australian investors. You could do far worse than to speak with him.

“The Australian Government restricts investment in property. That is the purpose of the Foreign Investment Review Board.”

Your quote

Rob,

“business and properties” mean exactly that, not just properties. Your post “The Australian Government restricts investment in property. That is the purpose of the Foreign Investment Review Board.” appears to suggest that the FIRB has been set up to govern foreign investment in property only. This is patently incorrect.

You may not claim to…[Read more]