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AUD / Australian Mortgage Financing & Rates

  1. #11
    bdw
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    Quote Originally Posted by MandM!
    Aussie dollar is tanking, hitting a 10 year low. Cheap to buy AUD now, but the currency was never stable. Also the property prices are questionable. Not sure why they don't get the influx of people and money, it's a nice place, but maybe its just "too far" from everywhere else.
    Sydney/Melbourne prices have been going down for about 2 years now since 2017 peak but last month turned a corner and a glimmer of hope that has bottomed and may be a good time to buy now. But still prices are high by global standards (but cheap by HK standards!)

    Perth prices have been going down since 2014, affected much more by mining/resources industry and relationship with China since they buy a lot of the stuff we dig out of the ground. Prices down about 20% since peak in 2014. I actually bought my main home there in 2016 when prices were down about 10% and thought was a good time to buy, I was wrong and have kept going down until today, but not a massive crash. Not like HK that goes up/down 20% in 6 months, I'm talking over a 5 year period. I believe now that after 5 years of downturn is an excellent time to buy, immigration picking up, Qantas just launched new Perth to London direct one of the longest flights in the world, ANA/Japan airlines launching new Perth direct services, etc. Coincide with the AUD plummet in last few months makes it even better to invest in AUD now. So I'm pulling the trigger on this, regardless of whether I move back to Aus end of this year or not, I'm investing more in Perth. Of course I could be wrong .

  2. #12

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    I don't think @bdw gamed the system, there is also risk and reward that he enjoys.


  3. #13

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    Quote Originally Posted by bdw
    Sydney/Melbourne prices have been going down for about 2 years now since 2017 peak but last month turned a corner and a glimmer of hope that has bottomed and may be a good time to buy now. But still prices are high by global standards (but cheap by HK standards!)

    Perth prices have been going down since 2014, affected much more by mining/resources industry and relationship with China since they buy a lot of the stuff we dig out of the ground. Prices down about 20% since peak in 2014. I actually bought my main home there in 2016 when prices were down about 10% and thought was a good time to buy, I was wrong and have kept going down until today, but not a massive crash. Not like HK that goes up/down 20% in 6 months, I'm talking over a 5 year period. I believe now that after 5 years of downturn is an excellent time to buy, immigration picking up, Qantas just launched new Perth to London direct one of the longest flights in the world, ANA/Japan airlines launching new Perth direct services, etc. Coincide with the AUD plummet in last few months makes it even better to invest in AUD now. So I'm pulling the trigger on this, regardless of whether I move back to Aus end of this year or not, I'm investing more in Perth. Of course I could be wrong .
    I guess the government wants the money from overseas into the new projects but second hand is the real market with only the locals buying. If you plan to live there, it's a good deal. Just surprised there isn't more immigration to Australia.

  4. #14
    bdw
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    Quote Originally Posted by wanderer01
    @bdw your posts are very interesting to read and I am quite fascinated with how you have gamed this whole system. I also get quite jealous since I am not able to take advantage of these things that you have ventured into, but maybe one day I'll be combing through these posts again to read up and take action!
    Thanks for the compliment, but honestly I'm just a regular guy, not from finance industry at all which makes me equally fascinated by some of the things I stumble across, and glad if my posts help a few others. I've also been lucky, my big break coming from purchasing HK property for $6m in 2009 which is worth $15m today. But also I have not been afraid to take risks, even in 2009 everyone in HK was saying property was so expensive, but I simply refuse to pay rent so I kind of forced myself to buy something. Similarly when I was a 19 year old full time Uni student and working part time 30 hours a week, I also took a big risk and bought my first property in Aus for the same reasons, didn't want to pay rent. I needed my fathers help to go guarantor though because no bank in their right mind would give a mortgage to 19 year old student.

  5. #15

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    Nice work. Same thing for me too, when we bought our property in HK, people said it was too expensive and of course too far. But home always has a comfort to it, and we have a decent size home that is fairly new development. I can definitely see myself coming back to HK or making a regular second home.

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  6. #16

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    Quote Originally Posted by bdw
    For owner occupier rates, thats quite high. Bankwest are offering me 3.2%. But the problem is I have to live there or intend to live their soon, they want proof that I will leave Hong Kong and a letter from my employer that I am allowed to work from home in Australia and still get my HKD income. But I haven't even spoken to my employer about this now and I'd prefer not to. So I am applying for investor loan again now and just tell the bank I'm living in HK, will be able to convert to owner occupier in the future if my living situation changes.
    Yup, it's not good. I will give them a call in Sep when I head back for a visit - my broker is ghosting me. I don't want to refi because i don't want to get on an investment loan which, i was told, is generally higher than owner occupier rates.

  7. #17
    bdw
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    Quote Originally Posted by loser
    Yup, it's not good. I will give them a call in Sep when I head back for a visit - my broker is ghosting me. I don't want to refi because i don't want to get on an investment loan which, i was told, is generally higher than owner occupier rates.
    The best investor loan I heard was 3.65% with CBA. But yeah if you are able to get owner occupier loan then go for it and definitely around 0.5% to 1% cheaper. I heard some places offer 2.99% owner occupier loans now. For me I wasn't able to, since my income is in HKD, when I apply for owner occupier they question if you are living/earning in HK then how can you be occupying the property? I thought Aussies are all dumb and lazy but some of them are smart and check these things

  8. #18

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    Quote Originally Posted by bdw
    I just look on realestate.com.au and domain.com.au. I have family in Perth where I want to buy now and many of the homes are open for inspection on weekends so I ask them to have a look for me, the last 3 weekends in a row they've been out looking and my parents have been bugging me to come home for years now so they can be closer to the grand kids so they are more than eager to help me out . I'm not in a hurry yet, plan to move end of this year so have a couple of months to find something and then a couple of months settlement period.

    Actually I already have a nice house in the area I want and will live in this, but its rented until next May, so I'm looking to buy a small apartment in the same area near the same school to live in only for 4-5 months and then when I can move into my house it will become an investment.

    Are you Australian or foreign buyer? If Australian then its much easier, if foreign you require the FIRB (foreign investment review board) approval and can only buy new properties and have to jump through a lot more hoops.
    Thanks for sharing bdw!

    I'm an aussie, but the problem with getting loans in Oz was quite difficult at the time (2017) due to the tighter restrictions from APRA. Back then, cba only used 60% of foreign income before putting that into stress tests!

    Now I've heard APRA has loosen the restrictions a bit, and glad to hear Bankwest is using 80%, rather than 60%.

    I'm from Sydney and now looking for a house to live when I move back, perhaps within 1-2 years. The place I have is only an apartment in a nice area, but most likely not large enough for my family to live in.
    Last edited by martykay; 15-08-2019 at 03:21 PM.
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  9. #19
    bdw
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    Quote Originally Posted by martykay
    Thanks for sharing bdw!

    I'm an aussie, but the problem with getting loans in Oz was quite difficult at the time (2017) due to the tighter restrictions from APRA. Back then, cba only used 60% of foreign income before putting that into stress tests!

    Now I've heard APRA has loosen the restrictions a bit, and glad to hear Bankwest is using 80%, rather than 60%.

    I'm from Sydney and now looking for a house to live when I move back, perhaps within 1-2 years. The place I have is only an apartment in a nice area, but most likely not large enough for my family to live in.
    Yes the regulators have recently loosened the lending criteria in Australia. BankWest told me last week that if I had applied two week earlier I would have been rejected, but now they say no worries at all. My HKD income is considered at 80% for stress test purposes, but not sure if this is BankWest condition or across the board, you might need to shop around.

    But note another condition, if purchasing as owner occupier they will lend you up to 80% of property value, but if purchasing as investor they only lend 60%. I'm going for the 60%, easier to get without showing proof that I intend to live in it (they wanted a letter from my employer in HK that I am going to leave HK but still get HK salary and can work from home in Australia).

  10. #20

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    Sorry, i actually checked my mortgages after posting this and they're at 3.78%.

    I bought my latest block of units Queensland through a buyer's agent who i was very happy with. Avoided NSW as the land tax I'm paying there already makes the numbers tough to swallow.

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