Hi fellow investors,
A mate of mine has recently migrated to Australia. He has brought a good amount of cash with him and intends to start a business here. He also intends to buy a property and was wondering what his options are for finance. I think he should qualify for no-doc loan and therefore get 70% loan. Is this correct?
PS: He does not have any regular source of income in Australia yet. He still has a business running in his homeland.
Your help will be appreciated.Hi
The usual requirement for many No Doc loans is being self employed for at least 1 day. This should enable your mate to qualify for a 70% LVR loan as soon as he gets an ABN.
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 Terry
I'm also about to emigrate to Australia. I've sold my business and I'm going to be a self employed painter and decorator (as well as property investor). My broker has told me I'd need an ABN, does anyone know if I can get that before I get to Australia. I've got a permanent visa, but we can't go for a few months while we tidy up our UK property investments.
Thanks
Jim
Hi,
I am also a new perm resident to Australia and am finding it difficult to obtain the relevant funding. I wish to secure a property with a completion date 3 years away. I do not want to tie up large amounts of capital for 3 years and therefore applied for a Deposit Bond. I was refused as I do not have equity here and they do not take my overseas equity into account.
Does anyone have any other suggestions as to how I can secure the property? The builder will not take any less than 10% (approx $35k)?
Any help would be most appreciated.
ScottieGirl
Hi Scottie Girl
Whats a deposit bond?
Jim
Hi Scottie Girl
Firstly welcome to Oz.
I emigrated from the UK 13 years ago so now things can be tough to start with.
Actually back for there now for 4 weeks holiday and can't wait to get back to Brissie in the warm.You wont find that you will be able to obtain a long term deposit bond without equity in a current Australian property. I have several dozen UK clients so have been through the exercise many many times and both of the companies offering Long Term Deposit Bonds insist on at least 20% equity in an Australian property.
Richard Taylor | Australia's leading private lender
Hi Scottie Girl
One way to secure a property without the need to get "traditional loan financing" is via Seller (Vendor) Financing. You usually do pay a bit of a premium to buy your property this way but you can often secure the property for as little as AUD$10,000 deposit.
The vendor finance loans we supply to our clients normally run for 30 years and have interest rates around those of traditional lenders. We structure these loans to encourage our clients to refinance into "traditional" type loans after 2 to 3 years.
Good luck with your move to OZ.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Jim Hartley wrote:Hi Scottie GirlWhats a deposit bond?
Jim
Hi Jim,
Deposit bonds are similar to bank guarantees, for a fee a lendor will provide a guarantee over your deposit. these are typically secured on equity in an Australian property.
ScottieGirl
PaulDobson wrote:Hi Scottie GirlOne way to secure a property without the need to get "traditional loan financing" is via Seller (Vendor) Financing. You usually do pay a bit of a premium to buy your property this way but you can often secure the property for as little as AUD$10,000 deposit.
The vendor finance loans we supply to our clients normally run for 30 years and have interest rates around those of traditional lenders. We structure these loans to encourage our clients to refinance into "traditional" type loans after 2 to 3 years.
Good luck with your move to OZ.
Cheers, Paul
Hi Paul,
Is this something that you can help me with or do I have to approach the builder for this?
ScottieGirl
Hi Scottie Girl
I very much doubt your Builder will touch a wrap or vendor finance deal so the only alternative is to have an investor purchase the property for you add on his profit margin and then wrap it to you.
The investor is certainly not going to be paying your deposit bond so really sounds like a non starter.
Richard Taylor | Australia's leading private lender
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