Low doc loan working overseas - newbie

Hi,

Sorry if this seems a dumb question but I'm new to property investment.
I'm an Australian citizen living in the UK for the next 3 - 5 years.
Trying to buy an investment property in Australia.
Have a home in Brisbane currently rented at $300 pw, realistic estimated market value of the home £450,000.
Trying to find out if it would be possible to get a low doc loan to buy an investment property. My only BAS in Australia is for the property rent received.

$6,000 left to pay on the mortgage
$67,000 in advanced payments that can be used
$65,000 in cash

Can anyone tell me if I would have a chance of qualifying for a loan.

Thanks for any help and great forum!

regards
Pimlico
 
Hi Pimplico

Wow down in Cornwall better the snow is lovely or has the novelty worn off.

I was back home in Exeter for a month just before Xmas and am glad i am back in Brissie in the warmth.

Certainly with the equity you have in the property I am sure there are a couple of lenders who would do the deal. Lodoc may not be required.

Are you working at all in the UK ? If so it could be done as a normal expat loan as you will have rent from both properties and this would probably be close to servicing the total debt.
 
Hi,

Thank you for your repy. Yes the novelty has certainly worn off and would love some of your Brisbane weather. Miss the spring and autumn in Queensland and the thunder storms.

As far as work is concerened, I am currently self employed for the last 18 months. I also have an offer of full time work but not sure if this would help.
This is why I thought low doc loans may have been the way to go.
No problem with maintainig a loan but proof of income may be the biggest obsticle.

Sorry to ask you all these questions but I'm just starting out. With the equity, how would a lender provide a loan? Would it be a mortgage on the investment property and security such as existing property title?

Not sure if I should pay the mortgage out or keep it with access to the $65,000 advanced payment. We'd either have a deposit of $60k and the title to our home or $126k (with the ballance of our home loan
of $73k) The rent more than covers the repayments.

Thanks for your help,
 
There are still a couple of lenders who will do you a 60% low doc. If you are self employed, you will require an ABN. This means you can borrow up to 60% of your exisitng property, and use this as a 40% deposit on the next investment.
 
A 60% lo doc isn't a problem. In many cases you don't need to be an ABN if the application is put together properly. We've recently managed to get a similar scenario approved for a client in China.
 
Hi there. Glad to see that you are doing alright in the UK. It must be dreadfully cold there now.

Because you have been self employed low doc may be the way to go. However, if ever you get that permanent job, it might help a lot and you might not need to go low doc anymore.

It would be wise to remember that normally interest rates for low doc loans are much higher than regular ones, so if you have the documents that can result in your avoiding low doc loans then it might be best to get a regular loan instead.

Just my two cents.

Good luck!
 
igster

You are right normally Lodoc rates are higher but with the lender Pete and I are referring to and with a lvr of 60% or less there is no increase in the rate of interest.
 
Hi,

As far as work is concerened, I am currently self employed for the last 18 months. I also have an offer of full time work but not sure if this would help.
This is why I thought low doc loans may have been the way to go.
No problem with maintainig a loan but proof of income may be the biggest obsticle.

Hi Pimlico

Question for you..are you able to show/confirm any UK based income or would loan serving soley come from Aust located properties?
 
Bear in mind that a few lenders pulled the low doc to non residents card a while back.

Heaps of people contract in the UK. In line with Richards thoughts, I'd try for it on a full doc.
 
Hi,

Thank you for all the replies. It's stopped snowing and almost 4C here.

The proof of income will probably have to be based on just the Australian income from an IP that we are looking at raising finance and the rent from our own home.
I have the offer of full time employment but it would be a while before I can provide proof of income other than a letter from the employer.

With the $65k savings I'm not sure if paying out the mortgage or using the advanced payments would put us in a better position?
Paying out the mortgage would leave a loan amount of $73k but will leave us $132k to use for an IP. Gross rent on our home is $300 p/w.
Would having no loan and a smaller deposit with a title be better than a larger cash deposit?

Thanks for all the help
 
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