Hi,
First some background information,
I am 30 years old and bought my first house when i was 18 and very slowly buying more.1st Ballarat value-$220,000 Own outright
2nd Townsville value $330,000 owe $170,000and just recently myfriend and I bought a place where i am currenly living in Moscow(mother Russia) where rental returns are around the 12% mark.
Now for my question- i borrowed my half which was around $80,000 from the CBA as a house investment loan package.I am wondering now is the equity for my moscow appartment now dead equity or will i in the future be able to use it in my equity stockpile and buy another IP.
Leon
ps(i hope that made sense as i think i confused my self writting it)Hi Doncossack, Did CBA know the money was for an O/S property and did they take any security over the property?
C2yeah they knew exactly what it was for..They havent got anything to do with it security wise. I guess they have all the security they need tied up in my other 2 properties in Oz.
DoncossackHi Doncossack & welcome to the forum,
Unfortunately Australian based lenders will not except offshore property as security, Cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Steven is right with certain exceptions Australian lenders won’t lend against overseas security.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hello Don
Welcome to the forum and good on you with the propertys.
Would love to hear your story about property in Moscow. Can you access your equity there with a local bank or institution ? Would you buy more property there ?
Good luck
Hi,
I think i can borrow against it with russian banks but the interest rates here are a staggering %12 for a 5 to 10 year loan. Sussing out any other ways to get a loan here as i dont want to eat anymore into my australian equityThinking about buying another one as appartments are currently rising at about %25 a year and with a rent return of about 10-12 peercent for a appartment in the very centre of the city you get both capital gains and rent.
Our 1st appartment cost only 120k US for a 44 meter, 2 bedroom in the very heart of the city.Renovation will cost about 20k for a nice european reno.Don
Ps( how much currently in australia can i borrow on my equirty in OZ now for another OZ property)hi Doncossack
I think russa is in the eu and you can get lending from eu counries using the euro.
look at london and there lending you will fiend the banks are very interested in lending to eu companies and individuals.
let me know at what rate you get finance.here to help
Hi,
No russia is out of the E.U and it will be a long long time before they will be a part of it. Too much corruption.Donhcossack
Hi Doncossack,
At 80% LVR you have $176.000 available equity in the Ballarat IP and $94.000 in the Townsnsville IP, you could possibly pull out more at a higher LVR but you would incur LMI.BTW, you don’t need to fund the next purchase via Equity alone, I suggest you use the equity for deposits and closing costs on the next purchase, IE borrow 80% secured against the new purchase with the remaining 20% from equity. With this method you are borrowing 100% of the purchase price plus associated costs, cheers.
Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
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