Foreign Property

[lmathers]

From: Lee Mathers


Hi all,

Just a short question, but it probably involves a long answer...

Does anybody have any information, or know where to get information on what extra steps are required to obtain finance when purchasing property overseas?

Specifically, looking to purchase a Canadian property using an Australian mortgage - how do the banks etc react to this?

Thanks for your help,

LM

 

[WebBoard]

Reply: 1
From: Projects .


I think you will find it hard to find a local lender willing to lend on overseas property. They wouldn't want the hassle of trying to sell it if things go wrong. Also don't forget the exposure to currency risk. The normal way to do this would be to use a local Line of Credit to cover the deposit and costs and get a mortgage for the balance in the country of purchase. Obviously you will need a good yield to meet the servicibility criteria and look at the tax aspects involved. Good luck.

Projects

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