Can I invest in properties with a significant investor visa?

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KitKat
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Joined: Wed Jul 31, 2013 3:58 pm

Can I invest in properties with a significant investor visa?

Post by KitKat »

Hey, I am from Singapore and I have heard that foreigners can invest in Australian property if they come on a significant investor visa. I have many investment properties already in Singapore and I want the same in Australia. I was wondering if it’s possible to apply for a loan and invest in residential properties there with this kind of visa.

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Otto Dargan
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Re: Can I invest in properties with a significant investor v

Post by Otto Dargan »

Hi and welcome to the forums Kitkat,

The Significant Investor Visa (SIV) came into effect on 24 November 2012 within the Business Innovation and Investment (Provisional) (Subclass 188) and the Business Innovation and Investment (Permanent) (Subclass 888) visa.

You will first have to apply for a 188 visa which is a provisional SIV. With this visa, you will not be able to invest in commercial and residential property at the moment. However, once you get your permanent 888 visa, you can do this.

To be eligible for the 888 visa, you will be required to invest a minimum of $5 million into complying investments such as:
  • Australian Securities and Investment Commission (ASIC) regulated managed funds with a mandate for investing in Australia.
  • Commonwealth, State and Territory government bonds.
  • Direct investment into Australian proprietary companies.
Since foreigners are making significant investments in Australia, the SIV waives certain visa requirements that are normally applied to other migrants:
  • There is no English language threshold requirement.
  • There is no need to satisfy the innovation points test.
  • There are no upper age limits.
  • There is no limitation placed on you or your family when holding a provisional SIV in Australia.
Hope this answers your question.

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

KitKat
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Joined: Wed Jul 31, 2013 3:58 pm

Re: Can I invest in properties with a significant investor v

Post by KitKat »

So once I do get the 888 visa how much will I be able to borrow then?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Can I invest in properties with a significant investor v

Post by Otto Dargan »

Hi Kitkat,
Once you get your 888 visa you will be able to invest in both residential and commercial properties. We know lenders that will be willing to offer competitive interest rates and loan terms to foreign clients who want to purchase residential or commercial investment properties.

With the help of our brokers you may be able to borrow up to:
  • 80% of the property value for residential investment properties.
  • 75% of the property value for commercial investment properties.
  • 65% of the value of other assets such as businesses that you are buying.
If you want a loan to buy a luxury property then you may be able to borrow 80% of the property value for loans over $1,000,000 and 75% of the property value for loans over $2,000,000.

You will need to prove that you can afford the loan to have it approved. This can be from the income from Australian assets you own, your foreign income or a mix of two. You will also need to provide evidence of your job with a letter from your employer. The job can be in Australia or overseas.

If you plan to rapidly grow your property portfolio in the future then we have a High Net Worth Clients package to help you achieve this.

If you would like to know more about these you can check out our website for more details. You can also call us on 1300 889 743 (+61 2 8668 2257 for callers outside Australia) or send us an online enquiry.

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

KitKat
Posts: 42
Joined: Wed Jul 31, 2013 3:58 pm

Re: Can I invest in properties with a significant investor v

Post by KitKat »

Okay, thanks so much for the details. I think it’s best if I call you directly. Speak to you soon.

Bye!

lukeparsons
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Joined: Thu Jun 20, 2013 7:07 pm

Re: Can I invest in properties with a significant investor v

Post by lukeparsons »

Hey, can you tell me more about the high net worth clients package. I too have invested in a few properties and would like to expand my portfolio.

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

Re: Can I invest in properties with a significant investor v

Post by Otto Dargan »

Hi lukeparsons,

Along with receiving our standard service you will also receive a range of additional benefits under the High Net Worth clients package such as:
  • Your involvement in each purchase will be minimised.
  • Free access to property reports.
  • Free bank valuations.
  • Your borrowing capacity will be maximized.
  • Communication problems between your professional advisors will be reduced.
  • You will get a holistic service from local banks.
  • You will get specialised pricing for your loans.
  • You will get policy exceptions based on our reputation as well as your experience, income and asset position.
You must meet the following criteria to qualify for this package:
  • You should have net assets of over $1,000,000.
  • You should have current loans, or applications to apply, for over $2,000,000.
  • You should have a sound knowledge about property investment with a proven strategy.
Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

lukeparsons
Posts: 42
Joined: Thu Jun 20, 2013 7:07 pm

Re: Can I invest in properties with a significant investor v

Post by lukeparsons »

Okay, sounds good. Let me call you up to talk more regarding this package.

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