All Topics / Overseas Deals / Bying property overseas

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  • Profile photo of FerdinandFerdinand
    Member
    @ferdinand
    Join Date: 2013
    Post Count: 2

    Is it possible to borrow from Australia and buy a property overseas? If so what is involved? I am an Australian citizen but live at the moment in the Ukraine were I would like to buy apartments. Any help would be appreciated as I am new at all this. Thank you, Ferdinand

    Profile photo of Nigel KibelNigel Kibel
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    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    No because a bank cannot take security over an overseas property

    If you owned a property in Australia you may be able to get a line of credit and use that as a deposit but the loan itself can only come from tthe country of origin

    Nigel Kibel | Property Know How
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    Profile photo of FerdinandFerdinand
    Member
    @ferdinand
    Join Date: 2013
    Post Count: 2

    Ok, thanks for your comment. Is there any other way to obtain money from Australia? In the Ukraine the interest rate is almost 20% and it would be cheaper to get a loan from Australia. I could buy 5 apartments with 10% deposit and the rental income would sufficiently cover the repayment – in other words they are cash-flow positive.

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

    The right property in Australia is also cash flow positive.

    If you have no security in Australia you will not be able to find an Australian lender take a property in Ukraine as security.

    Whilst a lender can take security overseas and in fact a couple of lenders i now will do Ukraine is not one of those countries.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
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    @zmagen
    Join Date: 2012
    Post Count: 523

    International banks like Citi and HSBC sometimes do lend for overseas purchases with the properties as security – strictly "A" class though (or, in other words, highly speculative plays with close to neutral cashflow). Our clients sometimes secure finance in the form of business credit lines, personal loans or low interest credit cards – but the vast majority seem to be cash buyers.

    not to put too fine of a point on it, but if you can't pull together $30k for a purchase, I would very much doubt if you'd be able to service a mortgage, particularly if you take exchange rate fluctuation risks into account (not saying this is your case, as I don't know anything about you, just a general comment).

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
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    Ziv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

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