Hey All,
I was wondering if anyone could give me some insite into taking out a loan for an IP while living overseas. I am 23, new to investing and have no equity to borrow against. currently my saving are not the best so i have decided to take a year of serious saving and learning before looking at buying my first investment property. Recently I have been looking into my loaning capacity, with little success. I have found that because i am living abroad there are fewer lenders that would loan to me. I have also been told that lenders will not loan above 80% on the price of the IP. I have been informed that for a $200,000 i would be looking at needing $50,000 dollars for the initail deposit and all closing costs. Does this sound right. I am still searching to see what other options are available for my situation. I thought i would just ask if anyone has any insite, maybe someone have borrowed before while living overseas. I hope my questions arent to broad,
Thanks
Leigh jleigh j
Deposit $200000 x 20% = $40000
Approximate costs $200000 x 6% = $12000$52000 ought to do it.
Talk to a mortgage broker, it’s free, for advice on borrowing money o/seas! I have had no problems so far, but haven’t tried to borrow more than 80% either.
Save hard, don’t rush into making an investment decision. The latest boom appears to be over so you have time to research the best long-term investment for your money while you save.
Good luck!
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]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
thanks for the advice. I didnt realsise that i wouldnt pass for LMI whilst I’m living abroad, thanks. So i will keep occupied researching, saving and visiting this web page. Thanks again.
Terry,
What would change (if anything) in this scenario, if there were two people applying? One overseas like Leigh and another in Australia.
If borrowing 80% or less (in joint application), would this pass lenders & MI criteria?
Hi Leigh
In the last couple of years I’ve done some borrowing for property while overseas and while there are quite a number of lenders that do have non resident programs, I wasn’t able to find any that went above 80% LVR for non residents.
While I won’t disagree with any of the previous posts, if you did decide that you want to enter the market now, I can think of a couple of ways this could be accomplished. They are, purchase a property via a lease/option ageement or via an Instalment Contract (often known as a wrap). A possible downside to either of thses purchasing techniques is that you may be buying above market price but in some cases, where the wrapper has bought well, you may buy at valuation.
While these techniques may not be for you, I’d suggest you research them. There is plenty of information on this website on both.
I hope this helps.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Have you read Nothing Down by Robert Allen? That is a great book to read
Some tips for you
1. Choose 3 banks in your area
2. PICK A loan officer you can realate to
3. Go to another bank if you feel you are not welcome
4. ask your loan officer if he owns real estate
5. determine what the loan officer’s credit limit it
6. ask the officer if it is poissible to establish an unsecured line of credit
7 Borrow as much as you can
8 replay your loads
9 repeat this process with a larget amount
Hope this helps
PS this is for the short term longHi Woodsman
If one person was in Australia, I beleive the LMI people would look at it, but probably wouldn’t count the income of the overseas person.
Jack, could you explain number 8???? “replay your loads”
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry,
You mean to say you understood this quote.
“PS this is for the short term long”
thanks PaulDobson and JackHu for the advice. I will continue my research to seeing what options are available.
Cheers
Leigh J
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