For the MB out there - Triplex finance @ 90% for expat

BelezaPura

BelezaPura

Hi All,

Hoping some of you can give me some pointers.
I'm an expat, working for an Aussie company and currently allocated in Asia.

Am exploring the possibility of building a triplex in QLD. I have the land and WBC is ok to lend for a duplex, but not for a triplex.

My broker says WBC will not consider a triplex (3 units on same title as security) and says WBC is the only that lends to expats at 90%.

I would need finance @ 90% of project amount.

Is he on the ball there or can you think of some other lender that may be able to consider this?

Thanks!
BP
 
Thanks Rolf

My salary is in foreign currency...

What lenders would consider lending to an expat for a triplex @ 80%...

Would prefer 90%, but need to explore all possibilities...
 
Most lenders will only go to 80% for ex-pats, but CBA and ANZ are exceptions to this. Under some circumstances you may get NAB and Westpac to also go to 90% but it's the exception rather than the norm. For the other second tier lenders you'll be doing okay to get 80%.

* ANZ policy will do 70% on a triplex development for an ex-pat, but not any more than 70%.
* CBA & NAB could theoretically do it at 90% but combining this with ex-pat lending and I think you're in for trouble.
* Westpac I wouldn't bother with anything over 80% for ex-pats, not even a straight forward single purchase.

An 80% lend on a triplex development for an ex-pat should be reasonably straight forward with the NAB, or CBA (NAB would have the more straight forward servicing model).
 
Rams can do 90% on a triplex, and can lend to australian citizens paid in foreign currency.

The main thing that trips us up with these sorts of deals is the val, the valuer will value the property 'in one line' rather than the higher amount if they were subdivided.
 
tobe said:
The main thing that trips us up with these sorts of deals is the val, the valuer will value the property 'in one line' rather than the higher amount if they were subdivided.
Click to expand...

which wont ( shouldnt) be an issue here since the intent was to always to stay on OOT

ta
rolf
 
There a couple of lenders (NAB, St George, RAMS, etc - my personal preference is St George for this space but NAB is also good depending on servicing) that will do the triplex but at the end of the day the valuation is going to be the decider in where you go.

My recommendation would be to see if you can order a few upfront valuations and then go from there. Some may not do it has the valuation would be whats called a "long form" report which is essentially a far more comprehensive valuation report rather than your standard 5 page short form reports for single dwelling purchases. As such valuers charge lenders much more.

My concern is you are talking about doing at 90% and you will have issues with one line valuation coming back low. Just to give you an example, my development was valued at $2.8mil end value but only $1.8mil as is so thats a difference of $1mil. I think you need to ensure you have adequate cash as the worst possible scenario is do take on a development and stop half way because you have no more money. Tradies aren't going to wait around for you and they will likely move on and it may take ages before you can get them back on your job.

Anyway good luck but definitely do some planning.
 
Are you Australian resident for tax?
Is your salary paid into an Australian account?

Can make a difference.

CBA did my triplex at 80%, but were willing to go to 90% with LMI. Also depends on what val this was based on. They used land val+building contract as the valuation. "market value" was non-existent until they were completed and subdivided.

SGB jerked me around completely.

Blacky
 
Blacky said:
Are you Australian resident for tax?
Is your salary paid into an Australian account?

Can make a difference.

CBA did my triplex at 80%, but were willing to go to 90% with LMI. Also depends on what val this was based on. They used land val+building contract as the valuation. "market value" was non-existent until they were completed and subdivided.

SGB jerked me around completely.

Blacky
Click to expand...

CBA is not going to do construction of triplex as part of their standard policy. You would need to request a hell of a policy exception for them to consider. You may have done the loan a while back or requested a policy exception.
 
tobe said:
Rams can do 90% on a triplex, and can lend to australian citizens paid in foreign currency.

The main thing that trips us up with these sorts of deals is the val, the valuer will value the property 'in one line' rather than the higher amount if they were subdivided.
Click to expand...

^ + 1 vote for Rams ( even tho they are part of the WBC group) -done one only last month ( Tripex ex-pat).

And shahin is right...CBA triplex is not standard but more a
" case by case" ....Westpac is ok for ex-pat @90% ....but not when it comes to triplex.
 
Mick C said:
^ + 1 vote for Rams ( even tho they are part of the WBC group) -done one only last month ( Tripex ex-pat).

And shahin is right...CBA triplex is not standard but more a
" case by case" ....Westpac is ok for ex-pat @90% ....but not when it comes to triplex.
Click to expand...

Interesting... I have asked my MB to contact RAMS to see if they can help me... He replied saying that he contacted them but they said they would only lend up to 70% of the costs...

I've seen places that you get a different answer depending on who you talk to... do you think this may be the case in RAMS?
 
Why are you going with RAMS over the other lenders (not that RAMS are bad but wouldn't be my first choice)?

Not sure if this may apply to you but RAMS will take foreign PAYG income but not foreign rental income.

Also RAMS will do 80% not 70% so not sure of the context of the conversation.
 
Shahin_Afarin said:
Why are you going with RAMS over the other lenders (not that RAMS are bad but wouldn't be my first choice)?

Not sure if this may apply to you but RAMS will take foreign PAYG income but not foreign rental income.

Also RAMS will do 80% not 70% so not sure of the context of the conversation.
Click to expand...

The context was the answers above with a recent example of RAMS going 90% on a triplex to an expat.

I am keen to explore all options, but that was the first I got.

Was just interested as there were two people saying they got 90% from RAMS, but then when my MB rang, he was told 70% is as far as they go...

What other options? St George?
 
I know RAMS will do 80% because I have done a few at 80% but wasn't aware they did 90%.

St George will not do 90% on a triplex. NAB is the only one that will do a triplex at 90% but the problem is that they only do 80% for foreign income.
 
Shahin_Afarin said:
I know RAMS will do 80% because I have done a few at 80% but wasn't aware they did 90%.

St George will not do 90% on a triplex. NAB is the only one that will do a triplex at 90% but the problem is that they only do 80% for foreign income.
Click to expand...

Yep, it will be an uphill battle...

80% + likely low valuation = me out of cash

Will consider my options...
 
BelezaPura said:
Yep, it will be an uphill battle...

80% + likely low valuation = me out of cash

Will consider my options...
Click to expand...

Your Val should not be low if your budget and the val estimate is 3 oot

Where Val's come in short is where u have strata subdivision on completion

Until completion you have 3 oot and most valuers will discount the Grv by 25 to 30 %

You are building to end product, so val should be fine. In theory

Ta

R
 
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