When I did a course in Japanese business in about 1993, I thought now may be a good time to buy some shares (have been dropping since 1990 too when the bubble burst). Luckily I didn’t as they have been still falling since.

But, yes it could be a good time to get in now, but you must know the market well, speak the language and know the rules and customs over there.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Lenders need a buffer in case they have to foreclose. Usually forclosing takes many months, and itnerest could be building up during this time as well as various legal costs. And then when they sell, they may not be able to get what it initially valued at. So a buffer is needed.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Japan is a whole different ball game to Australia. Properties have been falling since 1990, depsite it being cheaper to pay a mortgage than to rent. There are other problems such as foreign ownership rules, and finance. You probably wouldn’t be able to finance there unless you were working there.

Stick with an area you know.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Thank you everybody. You are too kind!

And sorry to all the people I have given ‘bum drum’ to!

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

That sounds about right to me. Being overseas, means you won’t pass mortgage insurance guidelines so would have to limit your loans to 80% LVR.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Sarah, sorry – I was typing while you were.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

You should look at paying IO on your investments while paying PI into your home loan. You should pay off non deductible debt first. Maybe keep paying the same amount overall, but just divert most of it to your home loan. It will save you interest and increase your deductions.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Hi again Terry, thanks for the info. Just to clarify, if I apply to get an ABN you said “they (lending institution)may ask what sort of business I am involved in”. What, in your opinion, would be a feasible response if I wanted the loan for investment purposes?? And, “they may ask for an income”, what income could that be? Could I put down rent received from I/P’s,(or would I put down the anticipated rent from the I/P that I am trying to get the loan for) if so, would this be ok with the ATO or would it not matter

Thanx for your help.
Marty
[/quote]

Hi Marty

When registereing an ABN, you could indicate you are a property investor. But if you tell the bank you are a property investor, they may ask about all your properties. If you have been self employed as property investor, and don’t have any property, they may say you are not self employed at that moment.

Wiht listing an income. You will be required to list you current income from self employment and any rental income as well – usually separately.

There may or may not be a problem with the ATO. If you are declaring $300K pa and do not actually make this, then theoretically the ATO could issue you an amended tax assessment taxing you on $300K. You would then have to prove you did not actually earn this.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Have you asked the bank to do another valuation with someone else? Or have you provided them with evidence of other comparable sales in your area? A real estate agents letter will not be considered, unless it lists sales.

As a last resort, just tell the bank, in writing, that you are refinancing with X Bank due to a higher valuation. Most banks wish to keep customers from leaving, so that may convince them to order another valuation from a different valuer.

If that doens’t work, you may have to actually refinance.

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]

Get legal advice. It shouldn’t be too hard to get a court order, and then get the sherrifs over there to kick them out,

Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]