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Investment Property in Australia

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  1. #1

    Investment Property in Australia

    Hello to Australians out there and anyone else,
    The National Bank of Australia in HK are able to provide us finance to buy an investment property in Australia. We are Australians. Just wanted to know
    1. If any other banks do this
    2. Investment properties are only for investment. If we move back to Perth, we would need to buy another one to live in. I was looking for advise on what is the best strategy for Aussie expat to invest in real-estate in WA.
    Thank you.


  2. #2

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    If I was in your shoes ( BTW I am Australian but from the East coast and do not have investment property.) , I would search for a reputable Financial Advisor in the WA region. Go online, research Australian Finacial Advisors and find the right one for you. Banks ( from my experience then they lost interest in me because I refused to) encourage you to overspend. A good financial advisor will give you options and your situation, how to improve it etc..

    Speaking for friends who have investment properties, keep it small but say, the cheapest house or apartment in the best area/ street. Do it up so that it looks good and keep it well maintained. We have rented properties where the landlord has done such a minimalistic, shoddy job, that they spend more money on the upkeep and fixing things than if they had forked out for decent quality in the first place.


  3. #3

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    I looked at it briefly (as a non-Aussie) and what I found out:

    Australia has a pretty easy track to permanent resident.

    Most states or territories have a first time home buyer credit. In Tasmania I believe it was AUD 30,000.

    In that case I would buy before leaving Australia then maintain Australia as your PR for any time period required.

    Buying as a foreigner (and I'm not sure if an Aussie living outside of OZ qualifies), then there are rules on either buying or selling property. I think foreigners can only buy new property hence the market to resell later is limited to Aussies only. So that puts trouble on prices as most new properties are funded by outside money whereas second hand market represents the local wealth which is much lower.


  4. #4

    Thanks for the advise so far.
    I am not able to get the first home buyers grant because I won't be living in there. Financial adviser is something I can look into. If you know any in Perth, please let me know.
    Thanks again.


  5. #5

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    I assume this is the one you are offered:

    https://www.nationalaustraliabank.co...operty_finance

    You could also try ANZ who are in Hong Kong:

    ANZ Expat Mortgages

    Personally, I just bought a place in Perth and got a loan through BankWest at 4.34% rather than trying to take out a loan in HK. But that was because I have two other properties in Perth also mortgaged with BankWest being used as security for the new one. So I was kind of stuck with them. But I am looking now at using the built up equity in my HK home to try and borrow money here in HK to send to Australia. ie borrow money at 2.5% here to pay off my 4.34% loan in Australia. But it's easier said than done. Completely refinancing all my Aussie properties with a bank here in HK such as NAB or ANZ is another option I might consider.


  6. #6

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    Quote Originally Posted by MandM!:
    Buying as a foreigner (and I'm not sure if an Aussie living outside of OZ qualifies), then there are rules on either buying or selling property. I think foreigners can only buy new property hence the market to resell later is limited to Aussies only. So that puts trouble on prices as most new properties are funded by outside money whereas second hand market represents the local wealth which is much lower.
    An Aussie living outside of Australia is still an Aussie and can buy whatever they like. But from an overall financial and taxation point of view it is generally better to fall into the "not Australian for tax purposes" bracket because even though all rental income is subject to tax (no tax free threshold), also your HK income will not be subject to Australian taxation. As long as you negative gear the property in Australia you wont have to pay any Aussie tax.

    Another stupid rule, my wife is not Australian so we could not buy secondary property in both our names. Only brand new property, or buy only in my name. So we bought in my name only. I'm still in the shit with the wife for this now but what can I do, its the law in Australia
    shri and MandM! like this.

  7. #7

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    I second the financial advisor suggestion above.

    Also, you might want to speak to a mortgage broker in Australia to see if there is an Australian Bank willing to give you a loan. Generally, if the deposit is good they will consider it.

    In relation to buying it as an investment property, there is nothing stopping you from eventually moving into it and living there. Classing something an investment property is a taxation term. It matters if you are not an Australian citizen, but as you are, you can do whatever you like.


  8. #8

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    Quote Originally Posted by MandM!:
    I looked at it briefly (as a non-Aussie) and what I found out:

    Australia has a pretty easy track to permanent resident.

    Most states or territories have a first time home buyer credit. In Tasmania I believe it was AUD 30,000.

    In that case I would buy before leaving Australia then maintain Australia as your PR for any time period required.

    Buying as a foreigner (and I'm not sure if an Aussie living outside of OZ qualifies), then there are rules on either buying or selling property. I think foreigners can only buy new property hence the market to resell later is limited to Aussies only. So that puts trouble on prices as most new properties are funded by outside money whereas second hand market represents the local wealth which is much lower.
    We ( as in, my husband and I) bought my parents' house as they could not afford to move out ( mess of a situ but basically they lived the high life too much well beyond their means) , gave them two years free rent, by that time, we had paid off the house and they paid us ( bottom dollar) rent. We sold the house after four years ( we're not happy but hey, we needed cash to buy our own home) and they downsized to a townhouse. One rule I learnt was in buying a house, you must live in it for 7 months minimum before you are able to rent it. I was advised this over ten years ago. So, I chose or forgo this. Too much hassle with stamp duty, tax et al. Australia since the PM reign of John Howard has become too expensive for what it is worth to live or invest, unless you buy somewhere that is being regentrified.

  9. #9

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    Quote Originally Posted by bdw:
    An Aussie living outside of Australia is still an Aussie and can buy whatever they like. But from an overall financial and taxation point of view it is generally better to fall into the "not Australian for tax purposes" bracket because even though all rental income is subject to tax (no tax free threshold), also your HK income will not be subject to Australian taxation. As long as you negative gear the property in Australia you wont have to pay any Aussie tax.

    Another stupid rule, my wife is not Australian so we could not buy secondary property in both our names. Only brand new property, or buy only in my name. So we bought in my name only. I'm still in the shit with the wife for this now but what can I do, its the law in Australia
    Well, speaking from the same situation ( my husband is not Australian), it is a case of put up and shut up of get the hell out. I go through the same thing as we are building a house in my husband's home country of Sweden. Taxes are straight forward but when it comes to building regulations, that is when the horse manure hits the raised roof beams. Differs from kommun to even the small area where you live. Rules that apply to your side of the road may not apply to the other side. Also, we were not eligible for the first home buyers allowance as my husband sold his first home to fund moving to Australia and our wedding.
    bdw likes this.

  10. #10

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    Also depends what value of house you are buying. You could easily borrow Hk$2m here fixed at under 2%. Unsecured. Don't think you can get much of house in OZ with that.

    The 4.5% the other poster wrote is bonkers. Not in this market.


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