Purchase an investment property whilst living overseas
Whether this is your first investment property or you’re adding to your existing investment property
portfolio in Australia, our passion is helping you reach your financial goals.
Why invest in property?
We can think of many reasons. Here are just a few:
Oftentimes, Australian expats earn larger salaries and/or benefit from
higher valued currencies that increase their power of purchase.
Australian expats taking advantage of earning income in a low or
tax-free jurisdiction.
Australian expats can use a mix of cash and equity (from existing Australian property)
to put towards the purchase price and closing costs of the new investment property.
Here’s how we can help:
Review your financial goals and help you find the best credit strategy to reach them
Arrange a bank valuation on your behalf to determine what equity is available for you to use towards an investment property
Offer you a wide range of Australian expat home loan options and negotiate rates on your behalf
Simplify the purchasing process, including taking care of research, paperwork, and all the other usual headaches that come with purchasing an investment property
Act as your local point of contact so that you feel close to your investment, however far away you are
Purchasing your future home
Purchasing a home in Australia while living overseas will not only ease your transition upon your return,
but it is also financially advantageous. Here’s why you may want to consider buying property before
your return home.
Why purchase your future home now whilst living abroad?
Build equity
Take advantage of lower interest rates and/or real estate market value opportunities as they present themselves rather than hoping the timing is right when you
decide to go back
Create that nest egg for yourself and your family to move into on your return
Avoid having to rent on return and start the property journey
Here’s how we can help:
Review your financial situation and determine a suitable budget
Navigate the often complicated intricacies of foreign income, currency, taxes, etc. in purchasing a property as an Australian expat
Research the best loan options for your particular situation
Negotiate home loan rates on your behalf, without you ever needing to be present
Review & Refinance Existing Home Loans
Whether prior to departure or whilst overseas, Australian expats who have an existing home loan should
review their loan and circumstances to ensure the loan is still suitable for their needs. We suggest that
you review your home loan every two years regardless of how long you’ve been living abroad or
how long you are planning on staying.
What we’ll check for when reviewing your home loan as an Australian expat:
Fixed vs variable loans:
A fixed loan locks in the repayments for a 1-5 year period and has less flexibility to make extra repayments, though the certainty often appeals to expats for simplicity and budgeting. A variable loan allows you to make additional repayments with flexibility, though the rate can increase or decrease at the discretion of the bank.
Principle and Interest (P&I) vs Interest Only (I/O) repayments:
P&I repayments allow you to amortize the loan evenly over 30 years, which from a cash flow perspective, will require a greater repayment as you are paying a portion of the principal and interest on the loan. I/O lending is generally for up to a period of 5 years, and at the conclusion, the loan amortizes over 25 years, requiring less cash flow as the borrower is only paying the interest portion of the loan, though the rates for this type of lending will be higher.
Review of loan features:
Oftentimes, We’ll explore the types of features available and what might apply to your circumstances, including an offset account, splitting the loans (to have a fixed and variable loan portion), and redraw features.
Why might you consider refinancing your home loan?
Accessing equity to finish renovations on the property, prior to renting out in order to maximize rental returns
Access equity to continue to invest in property or other investments (such as shares)
Consolidate existing debt in Australia to pay and close credit card debt, personal loans, or car loans
Review of the existing loan to ensure the product and features are still suitable for an Australian expat
Here’s how we can help:
Assess your existing home loan to ensure it is still serving you, and if not, find other lending options.
Reprice your existing loan with your current lender
Simplify the process of refinancing your home loan
FAQs
Does credit policy change for Australian expat home loans?
The short answer is yes. We’ve written an entire blog post on what you’ll need to know about credit policy as an Australian expat, from foreign income to self-employment to foreign spouses.
Are the same bank products available to Australian expat home loans compared to regular Australian home loans?
We can negotiate on your behalf a discounted home loan rate with some banks in Australia. Some of those bigger banks will not allow for discounting or only pass a small discount for Australian expat home loans. This is not the case for all products available to Australian expats, so please give us a call to discuss your options. To understand the costs involved with the purchase or refinance of an Australian investment property click here.
What currencies are acceptable for Australian expat home loans?
The most common currencies accepted for servicing of an Australian expat home loan include: United States Dollar (USD), Great Britain Pounds Sterling (GBP), Euro, Singapore Dollar (SGD), Canadian Dollar (CAD), Hong Kong Dollar (HKD), Japanese Yen (JPY), Swiss Franc (CHF), New Zealand Dollar (NZD), and Chinese Renminbi (CNY), Bahrain Dinar (BHD), Malaysian Ringgit (MYR), Qatari Riyal (QAR), Saudi Arabian Riyal (SAR), United Arab Emirates Dirham (AED).
These currencies are considered the tier one or gold currencies for the banks and lenders. These gold currencies are more stable and lenders will take a higher percentage of income for expat finance.
The following currencies may be accepted and are considered tier two or silver currencies: Bruneian Dollar (BND), Danish Krone (DKK), Fijian Dollar (FJD), Indian Rupee (INR), Indonesian Rupiah (IDR), Kuwaiti Dinar (KWD), Macau Pataca (MOP), Norwegian Krone (NOK), Oman Rial (OMR), Papua New Guinean Kina (PGK), Philippine Peso (PHP), Samoan Tala (WST), Solomon Island Dollar (SBD), South African Rand (SAR), South Korean Won (KRW), Sri Lankan Rupee (LKR), Taiwan New Dollar (TND), Thai Baht (TBH), Tongan Pa’anga (TOP), Turkish Lira (TRY), Vanuatu Vatu (VUV), Vietnamese Dong (VND)
To read more about accepted currencies, click here.
What are the costs involved for Australian expats?
When Australian expats are considering a purchase of a new property or refinancing an existing mortgage, it is important to consider the costs involved in the transaction in order to determine the overall cost. You can read more about costs involved with expat finance here.
What income is acceptable for Australian expat home loans?
Ordinary income used for expat lending is generally in-line with standard lending practices and can be accepted. Lenders will shade foreign income (depending on the currency the income is generated in) and take a portion. You can read more about that here.
