singapore funders

[grossreal]

hi all
not sure if there are many that are using singapore funders.
but looking for people on the board that are attached or have brokers that are attached to singapore funders that will lend on australian assets.
I have a couple of contatcs there but looking for more.
I am looking at seating a couple of aust deals with singapore lenders.
and before we start don't post currency risk or anything like that as I understand currency risk and the structure we use mitigates that to a certain degree.
I understand the funders there but looking for people that can get there foot in the door instead of cold selling or in my case cold buying
most of this type of lending is who you know.
so if you could come back here pm me or email to [email protected] would be good.

 

[boomtown]

Nothing exciting - we use the Singapore branch offices of ANZ and HSBC. But there are residency issues - funding needs to be routed through a Singaporean resident (who cannot hold it on trust for an Australian resident).

We havent worked through whether a Singaporean resident corporation can do the borrowing with Australian resident shareholders.

 

[Kennethkohsg]

Nothing exciting - we use the Singapore branch offices of ANZ and HSBC. But there are residency issues - funding needs to be routed through a Singaporean resident (who cannot hold it on trust for an Australian resident).
.

&&&&&&&&&&&&&&&&&&
Dear Boomtown,

1. Pse further elaborate on these various residency issues.

2. As a locaL Singaporean with an Australian Permenant Residency Visa status, would I be able to help you or/and other Australian investors in this case, please?

3. Looking forward to learning further from youy, please.

4. Thank you.

Regards,
Kenneth KOH

 

[kum yin lau]

Hi, when conditions were right, this scenario might work. Singaporean resident [high income, low tax] Aust PR/citizen, good property purchases [not in Adelaide at the moment, more in Melbourne & Sydney perhaps]

I had broached some of my friends in 2002 to join up and buy an entire block, 2 commercial properties and 1 residential. End result, no one was game & I ended up paying a song for 2 blocks of decrepit shops now doing quite well.

Then I suggested this. Form a company with the Aust resident holding 51% and the foreign investors holding 49% and then see what the borrowings in SGD could be.

Result: Westpac gave me a 75%LVR loan in 2003 @ 1.8% interest but they wouldn't loan to the company nor on commercial property.

I wonder if conditions have changed. The last time I went back to Singapore, the interest rate had gone up to around 5 %

Kenneth, the bankers I saw were all located in Suntec City. You might want to investigate a little further and tell us what you find.

Conditions are now right as far as Forex is concerned, with the AUD falling recently but it's since gone back up to 70c

But property here in Aust? I'm not quite as certain as I was in 2001/02

Still, from a yield prospective, certain parts of Sydney/Melbourne are looking good. Devt projects might also work, with the foreign investor buying off plan with SGD borrowings. I can't think where in Aust you can't get a 5-6% yield on devt properties.

KY

 

[boomtown]

&&&&&&&&&&&&&&&&&&
Dear Boomtown,

1. Pse further elaborate on these various residency issues.

2. As a locaL Singaporean with an Australian Permenant Residency Visa status, would I be able to help you or/and other Australian investors in this case, please?

3. Looking forward to learning further from youy, please.

4. Thank you.

Regards,
Kenneth KOH

For personal lending my experience has been that HSBC, Lloyds TSB and ANZ Singapore will not lend out of Singapore to Australian residents.

We have a family member who is a Singaporean resident / Australian citizen who buys Australian property using dual currency mortgages.

The mortgage is denominated in Singaporean dollars and repayments are in Singaporean dollars at a Singaporean interest rate but secured against an Australian property. The Singaporean interest rate is tied to SIBOR - generally around 2% (although there are currently some problems with that atm due to the credit crunch).

You can choose to "convert" the mortgage into a normal Australian dollar mortgage using Australian interest rates. We "converted" all of the mortgages over in September before the Australian dollar plummeted because I got a whiff of what was happening. So we do not currently hold any Singaporean mortgages. I am not prepared to hold any Singaporean mortgages during the current market volatility even though the AUD is relatively weak (it could get a lot weaker....).

The banks will not lend Singaporean mortgages to Australian residents (at least I have not found anyone that would but apparently HSBC might if its over $1 million and you are with private banking with them).

I asked the banks if they would lend to a Singaporean resident holding the property in a trust for an Australian resident. They said no. That means you would need to use an undisclosed trust or breach the terms of your mortgage by imposing a trust after the funds have been disbursed.

I have not explored what is possible using a Singaporean corporation which has offshore shareholders (or 51% Singaporean shareholders maybe). But I would like to know more.

Some limited information here: http://www.lloydstsb-offshore.com/International/Mortgage/investmentproperty

Keep in mind that LVRs are generally 80% or less. Also the currency risk is very serious and must be managed.