Whether its for a holiday home or to capitalise on low priced property for an investment, you will need to borrow money in order to purchase the property.
Most lenders in Australia will not be able to loan you the full amount.
If you already own a property in Australia then there are a few creative solutions you can use.
With each country has its set of rules and regulations, Aussie financial institutions cannot take overseas property as security against the money they lend you.
If you have enough equity in your Australia property then the banks can help you.
The amount you can borrow it dependent on many factors.
www.homeloanexperts.com.au have this to say regarding the amount you can borrow:
One important thing to note is that some countries limit you to borrowing 80% of the property value or Loan to Value Ratio (LVR).
This borrowing limit is very similar with a lot of developing and even developed countries, particularly those burned by the global financial crisis (GFC).
Australian banks are one of the only few institutions to offer 105% investment loans by way of a guarantor arrangement with your parents.
With no guarantor, you can still go up to 95% or even 97% of the property value.
So because of this 80% LVR restriction that international banks have, you would need your own funds for a 20% deposit, plus an extra 3-5% of the property value to complete the purchase of the property. Read More …
In a previous article, we covered some of the cheapest European destinations you can buy property in. Many Australians haven’t consider countries such as the US, although it is becoming an increasingly popular destination.
Prices for property in the US can be cheap. Thats because many homes are put on the market because of the foreclosure process. In this situation the lender needs to sell the property fast in order to cash in from the property as the mortgagee owed the lender money.
With rising unemployment in the US, the number of houses being sold under foreclosure has been over 0.8 million in just one year.
Yap advises Australian’s buying in the US to stick near the best pockets, just as they would be advised here domestically.
That doesn’t mean one has to buy in the city centre, but sticking along the fringes of the most popular areas will mean the recovery will hit those areas first when the cities recover, he says. In California, for example, he recommends bargain hunting in Beverly Hills and Orange County, despite the impression many Australians might have that they couldn’t afford to invest there.
“The TV shows make it look like everyone is a multibillionaire there, but it’s not the case,” he says. Continue Reading …
Once you have found a property that you wish to purchase there are still a few more hurdles for you to get over.
There is often a lot of red tape as well as a slow communication process as you have to deal with real estate companies and the local authorities in a different country.
Then you have the legal process of transferring ownership from the lender into your name. Every country will have different laws and legislation for you to overcome.
Once all legal papers have been written and exchanged, then you’ll need to transfer money overseas to the lender.
Transferring funds to another country needs to be done effectively, securely and at the lowest cost possible. One of Australia’s upcoming, reliable and affordable services to do this is The Currency Shop who can be found online at https://www.thecurrencyshop.com.au.
There are plenty of resources online that can provide you with more information on this and we’ll continue to post content on buying property abroad.