100% for overseas?

[Lady Lea]

Hi there

I have emailed loads of people and followed other boards and have still ben unable to find 100% funding for me (in UK) to buy in NZ or Australia.

Am I missing something? Does it happen?

Is anyone creative in financing? Is there a broker or lender that likes to do this.

I am only looking for 100% on bargains - ie things with at least 15% discount- does the gifted deposit structure work there?

 

[Rolf Latham]

Hi

Its close to impossible to even find 100 % funding for a local buying local without using some form of smoke and mirrors.

Under some conditions it can be done, but most high lend deals will require some form of mortgage insurance which rules out most non-residents.

Ta

Rolf

 

[Lady Lea]

so if my Husband is resident and passport holder it could be possible?


I am interested in what I can do now to prepare for this - ie if I plan to come over in Sept 2004 - what things do lender like to see a record of - should we get a NZ credit card and use it regularly to make a nice history? or do they like to see a savings track record?

I like to plan ahead to get the best possible deal when I am ready.

I already have bank account in National Bank (horse)

I do not like to gear up high - this is why I would only use it on highly discounted property.

 

[Mike]

Hi Lea,

I met you briefly at the London Property Show and at the recent Panel Event at Luton on the Sat. I know your investing strategy is to buy directly from the vendor and make a quick purchase in exchange for a discount then sell quickly to other investors. We call that Flipping in Australia. We adopted the American term. To be honest, I can't see how you can do this strategy until you come over and live here or in NZ. According to Aust law non-resident foriegn nationals can only buy new property and must hold it for a year at least. You can get 80% LTV (LVR in Aust) funding by a local lender but this is not what you want.

100% funding is achievable by purchasing at a large discount and having the lender lend to market value rather than purchase price. This normally doesn't occur for a straight out purchase (unless it is a new-build and you receive a cashback or gifted deposit from the developer) but is more common with renovations or conversions. Example:

Property Value = $120,000
You buy for $100,000
You put deposit down of $30,000 and borrow $70,000
You also take out a renovation loan of $20,000
Total loans = $90,000
After renovation property revalues at $150,000
Bank refinances (remortgages for UK) at 80% LVR/LTV = $120,000
Loans stay at $90,000
You get the difference which is your original deposit of $30,000
Voila! 100% finance aka No Money Down.

If this is what you are after then you really need to be here to oversee the renovation/conversion.

On the subject of loan application criteria Australian lenders like to see income statements because their lending formulas are based on this. Since you have been investing for 10 years you have a proven track record. Get a copy of your credit history file. Show some cash in the bank. Show some proof that you're a NZ resident and you should have no problems getting a loan once you are over here.

Regards, Mike

PS: Have a look at the Coromandel Peninsula in NZ for investing into. A Kiwi at work suggests that this is a growth area on the North Island. There are a few tourist and Estate Agent websites of the area. Worth a look.