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I suggest you contact your broker and still go for a pre-approval asap.
Even if you miss this property, there will be plenty of others available which will suit you well, I’m sure.Otherwise, if you want to go ahead with a contract of sale, make sure you put it conditional to Finance Approval (otherwise, it’s a big risk for you…)
I have one property in Ballarat (Golden Point) and my PM told me the vacancy rate has been increasing in the last 6/12 months, following lots of investment from Melbournian there…
Hi PE,
I’ve been living overseas for 4 years now and I purchased 2 properties in the last 2 years in Australia.
Each time, the process has been quite smooth and mainly thanks to a great team working for me.
I used a broker to organise the finance and a buyer agent to source the properties. While it brings a bit of stress to be far from the action and to purchase a property unseen, if you have skilled people to take care of all purchase steps and you can feel they doing everything to have the best output, you should not have any concern.
Few points to take care of:
– Settlement period: Don’t be too agressive on settlement period as all document for Finance will have to be mailed to you and come back to Australia. It might take a bit of time depending on which country you’re living.
– Ownership structure: On my last purchase, I got a small hiccup as our original plan was to put the property title on my wife’s name and have both of us on the loan. Following new restrictions on Finance, and the fact we were non-resident, we had to change the ownership structure and put both of our names on the title in order for the bank to approve the loan. While it might be specific to my case, ensure you have proper advices on this point.Hey Jacqui, you’re right that I owe a big Thank You to Richard for this one.
As I’ve only been aware of the issue at the end of the few days discussions, and a clear way forward was proposed to me, I didn’t stress much about it. As you mentioned, having a great team of skilled people is really key in such situation.Good to know. Despite my username, I am an Australian citizen expatriate overseas…
Do you know if CBA would go up to 90% LVR for expatriates?You’re right, it’s StGeorge.
Does CBA also provide loan for non-resident (without too much hassle)?Thanks Colin.
IP#1 & #2 are with different lenders but for IP#3, likely I will have to go with the same lender than my last purchase as I don’t live in Australia and and there are few lenders that allow loan for non-resident (for this level of LVR at least).Thanks for answers, guys.
I’m not in this situation, and I hope I never will, but I wanted to have visibility on this.
Have 2 IPs today: IP#1 (500k at 80% LVR but fully offset), and another one recently bought (IP#2 @230k at 90% LVR)
I’m keen to go to another purchase in the coming months, likely to be at 90% LVR again. So good to read that, in case the market would go down for one of them, I should not be asked to get the loan down, or at least, not at a time that does not suit me.Cheers,
EricYour first few posts have all been challenged so far. I hope you will take more time to understand how this forum works as moderators are already scrutinizing your inputs…
Good luck.
I guess there is no big difference between buying from overseas and buying interstate site unseen (in terms of trust of people you work with, at least)
As said in previous post, you have to make your own due diligence on whoever you want want to work with and not just choose from the nicest website…
Quite a few posts on this forum from people who want to crosscheck references for Broker, PM or other.
Good Luck.
If you have your friend cash on your offset account but pay him some interests just below your mortgage interest, the gain is quite minimal for you, isn't it?
You will just gain (rate of loan – rate your make to your friend) * amount of cash he has on your offset.
It looks more interesting for him than for you, but you still have a little bit of gain though.
Thanks Terry.
I thought it would be the opposite. What my accountant wrote me (but I might have misunderstood it) is:
"Please note that any interest income earned whilst you are a non-resident of Australia for income tax purposes, the interest income should be taxed at a non-resident withholding tax rate of 10%"
If I would be resident for tax purpose, it would be taxed at my marginal rate, wouldn't it?
I'm living in China now and I'm not anymore a resident for tax purposes since Jan 2012.
I plan to come back living in Australia in 2014, and therefore will become again a resident for tax purpose but my issue would be fixed by then (fixed loan would have switched back to variable)
What is the impact to be or not a resident for tax purpose?
Thanks
You're right: the property I purchased in Oct 2011 was my PPOR and is now an IP. But I'm just renting it for the duration of my work assignment overseas, so it's not a "permanent IP"…
I plan to come back to Australia at the end of my assignment (in at least one year time) and will live again in the property.
So I don't have any other loan on property or credit card that would need to be paid off.
Cheers,
Eric
Still don't get why the leaderboard points does not match the profile pop-up window points…
Would you mind telling us which suburbs are your properties?
It might prepare some of us for an upcoming bad news…
