Foreign investment home loan

Any general questions you might have in regards to loans and finance.
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omaros1
Posts: 3
Joined: Tue Jun 15, 2010 10:53 am

Foreign investment home loan

Post by omaros1 »

Hi ,

We are a family that lives in Indonesia, my wife works for the British International School in Jakarta and we are thinking of investing in a property to rent (home to let).
My wife has an income of around US$95,000 (US$51,000 nett) certified by the employer. I am self employed and in a gray area about taxes and accounting at the moment (for Visa and residency reasons) but I bring in an additional income of around US$30,000 a year and we also have saving of US$20,000 plus a saving investment (10 year plan, on it's 3rd year and valued so far at US$29,000). We pay US$1,000 per month into this plan.

We don't own any properties and we also don't pay rent or house bills in Indonesia because my wife employer takes care of that.

We would like to know how much we need to save for a house deposit (i.e 10% or 30% of house value) because we don't know how much the banks are willing to finance.

We also like to know what are our chances to get a mortgage, your fees etc.

My wife went to a bankrupcy procedure in 2001 in the UK before we got married (I think it should be clear from her file next year).
I have a very good credit history.

Looking forward to hear from you


Kind Regards

Omar

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Foreign investment home loan

Post by Otto Dargan »

Hi Omar,

Are you buying a property in Australia or overseas? If in Australia then we can help you, if not then I cannot be of assistance.

Which country are you citizens of? Are you buying the property as an investment or as a holiday home?

I just need to know this additional information to make sure my reply is accurate.

Thanks
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

omaros1
Posts: 3
Joined: Tue Jun 15, 2010 10:53 am

Re: Foreign investment home loan

Post by omaros1 »

Hi Otto,

We like to buy in Australia.
I am Italian citizen, my wife British.
We like to buy the property as investiment (rent it) to start with and in 5 years time allow our kids to use it while in University in either Melbourne/Sydney or Brisbane.
Thanks
Omar

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Foreign investment home loan

Post by Otto Dargan »

Hi Omar,

That sounds fine. You can borrow up to 80% of the value of the property. You should allow 20% as a deposit and 5% of the purchase price to cover the costs of buying a property such as government taxes and legal fees. As you are foreign citizens living overseas you must buy a new property or buy land and then build a house. You may want to refer to our FIRB page for more info.

Any overseas credit history is not assessed by Australian lenders so in that regard I see no problems. One lender can accept a letter from your accountant as evidence of your income and will allow you to borrow 75% of the property value. If we don't need evidence of your income (i.e. your wife's income is sufficient) then you can borrow 80% of the property value.

Thanks
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

omaros1
Posts: 3
Joined: Tue Jun 15, 2010 10:53 am

Re: Foreign investment home loan

Post by omaros1 »

Thanks Otto, we need to start looking for a deposit then and keep it in the account for 3 months (as per the instruction on your web site). I think my wife salary will be sufficient to get the mortgage. If I need further info and like to use your service can I call you directly?
Regards
Omar

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Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Foreign investment home loan

Post by Otto Dargan »

Hi Omar,

Yes feel free to call us from overseas on 02 8668 4038 / +61 2 8668 4038. Amine or Tina in our office would be the best brokers to speak to. I expect your wife's salary will be ok as you do not have many other expenses.

Thanks
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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