Overseas Property

Hi

I'm a newbie here. Found this website most educational and informative.
We are fairly new arrivals here in Oz and have not sold our overseas property.
Question is - can overseas equity (current valuation of overseas property less
outstanding mortgage) be accepted in home loan application? If possible, what level of deposit should we be looking at - 10%, 20% 30%?, assuming the net overseas equity is in the region of A$300k and we are looking at
buying a property of this value?

Anyone has any experience of this nature? Any advice would be appreciated.

Thanks.

You need to approach your overseas lender, borrow some cash, and bring it to Australia. Then dedending on whether you are a resident or not you may need FIRB approval. In this case you will need 30% deposit. If you are a resident you wont need as much deposit.

I seem to remember vaguely HSBC saying they can xcoll overseas property, but they tend to say a lot and not deliver IMHO.

Hi Newoz,

Try sending a PM to Pete aka PTBear. He knows everything about overseas lending.

Cheers, Medine

Hi newoz,

tobe is right. Approach a lender local to your overseas property and draw down the equity as cash. Use this cash to purchase property in Australia. If you've got permanent residency there's no problems with borrowing in Australia for you.

If you don't have permanent residency, then the deal you can get will depend on a number of factors. Your upper limit will probably be 80% LVR, but as you've got a lot of equity available, this shouldn't be an issue. Higher LVRs may be available but this depends on the lender, serviceability and which country you're a resident of.

The other problem you might face is brining the money from your existing property into Australia. Many countries have some fairly nasty laws restricting how much money can be transferred internationally, so you may want to investigate this. These issues can usually be solved, but it can take time to get through the red tape.

The final thing to consider is the timing. The AUD is quite high at the moment, so it might not be the best time to bring money into Australia.

Where are you from?

Hi all

Thanks for all the advice. Im just starting to look into how to get
started, and the amount of information on this forum is simply amazing.


Btw, ggumpshot, Im from Singapore.

Have a great day.