All Topics / Overseas Deals / U.S finance for Oz property?

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  • Profile photo of anawanahuananaanawanahuanana
    Participant
    @anawanahuanana
    Join Date: 2007
    Post Count: 10

    Quite simply, is it possible? Are there lenders in the U.S right now that will give you a mortgage secured on a property in Australia? I know that in this scenario there are dangers with the exchange rates between currencies, but the difference in interest rates would surely negate these? Just a thought, and I'd appreciate your feedback.
    Thanks….

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    There are Aussie banks in Japan that lend for Australian properties in Japanese yen -with various conditions. NAB do it and ANZ too I believe. So it is likely USA branches of the Aussie banks will do the same.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Not as optimistic as Terry.

    There none that i am aware of.

    I agree with Asia and the like but not the US or UK.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of voyagervoyager
    Member
    @voyager
    Join Date: 2007
    Post Count: 18

    yea, asia is pretty easy to do that. Note sure about the US.

    Profile photo of MITMIT
    Participant
    @millionaire-in-training
    Join Date: 2004
    Post Count: 154

    Just a quick question
    What's wrong with the OZ Market? there are deals everywhere
    Also have a look at Steve McKnights post on a similar subject, he makes some salient points
    Warm Regards
    Sue

    MIT | Owen Real Estate
    Email Me

    Profile photo of boomtownboomtown
    Participant
    @boomtown
    Join Date: 2006
    Post Count: 5

    I have looked into this. 

    The requirement of NAB or ANZ is that you must be a tax resident and earning an income in the offshore jurisdiction (ie Japan or USA) where the mortgage is taken out.  I am not aware of any financiers that will allow you to take out a multicurrency mortgage (ie a loan denominated in USD and using a US rate of interest but secured against an Australian property) if you are an Australian tax resident. 

    Things can get a bit scary pretty fast if the Australian dollar declines.  The lenders require you to maintain a minimum LVR of 25% and recommend an initial deposit of 30%.  So if the Aussie dollar drops by 10% and you are on the wrong side of your LVR you will face a margin call for the difference (ie 5% of your property value).  A 20% drop would be a 15% margin call.   So this is not a product for the faint hearted and you have to be pretty confident about Australian inflation remaining a threat to prop up interest rates and therefore supporting the dollar. 

    All that being said you can get some pretty amazing rates offshore.  I would be interested in talking to anyone that has been able to work a way through the tax residency issue – because if you use a foreign national to hold the property you will never get through the Foreign Investment Review Board. 

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    The St.George Foreign Currency Home Loan offers customers who may be residing either within Australia or offshore the ability to borrow funds in a foreign currency, provided their main source of income is denominated in the same foreign currency, creating a natural hedge for loan repayments.

    Foreign currencies available are:

    • Hong Kong dollar (HKD)
    • United States dollar (USD)
    • Singapore dollar (SGD)
    • British Pound Sterling (GBP)
    • New Zealand dollar (NZD)
    • Euro (EUR)

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 7 posts - 1 through 7 (of 7 total)

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