How easy is it to get a mortgage in Oz

[AnxiousMum]

Hi,

We have now thought of a new way of making some money in Oz, my husband is now talking about selling up in Uk, and buying somewhere in Melbourne with the money we make from the house, then getting a smaller mortgage in Oz and buying an apartment and then renting it out as a holiday home.

Anyone done this? Any thoughts of if its a good idea? Does anyone know much about getting a Mortgage in Oz, is it easy or harder than uk?

Any thoughts welcome.

[Wallace]

Can you only apply for a mortgage / buy a property if you are a permanent resident in Oz? Or does it depend on the type of visa you are on? Does anyone know if you are eligible for buying a property in Oz if you are on a subclass 457 business 4 year visa?

Any information would be useful! Thanks

[Pinhead]

If you are a permanent resident or citizen then you can buy any property / land in Oz you like.
If you are not a PR or citizen then I have been informed by Melbourne EA that there are restrictions in place so that you can only buy off the plan properties.

I bought an apartment on 471 LB in Sept 2006 which is on a long term lease to the Mantra (as was Pacific) hotel chain. I get a fixed guaranteed rent paid into my account automatically every month with no deductions whatsoever (water, rates,etc) as all are paid by the tenant.
The rent is increased 3% everyother year, by the RPI the other years with rent review's every 5 years.
For an initial investment of $337K I am now getting around $25K pa guaranteed net before tax.
I can't help on the mortgage front as I got one on my UK house to pay for it in cash.
There are several apartment blocks in the Melbourne CBD with a similar arrangements which I would recommend you consider if you are going to buy an investment property.
At current levels you be paying a price that would generate 6-6.25% income net ie $333K cost, $20K rent.

If you have an employment history of 6 mnths with a good salary & decent deposit (15%+) then you shouldn't have any problems getting a mortgage IMO.

[sammy11]

if you are not a permanent resident then you need approval to buy, obtained from the foreign investment review board, and they want/require you to buy new property as pinhead says.
if you get approval and buy, you will be forced to sell if you leave the country before you become a permanent resident.
main problem in many parts of the country is a shortage of property and high mortgage rates.

[jonseywife]

We were also advised by the bank that you have to prove have been working in permenent regular employment for at least three months in Oz. Unless your self employed and you apply for a low doc mortgage, when you predict your future earnings (but they dont lend you so much).
Try the ANZ bank website, they have calculators on there to see how much you can borrow and what the repayments will be.
You'd be better of speaking to a specialist really. Good luck
Sally-ann

[Graham&kym]

My experience with borrowing was no problem as long as you can pay it off in the term that you are entitled to remain...but cost will be 7.25% ...

[MMN]

Hi Guys

Just pop all the details in an email to mandy.dickerson@mortgagechoice.com.au She can give you the break down and all the requirements needed as far employment/self employment

Hope all works out for you

Maria

[johatts]

We had no issues getting a mortgage from BAnkwest

You dont have to have PR in order to get a mortgage. You need approval from the FIRB which is free and easy!

If you dont have PR the only things are that you will NOT get the homowners grant and you may have limited choices for bank mortgage offers!

[moving2melbourne]

You would be best setting up the rental property as a business and getting an ABN you can then apply for a low doc loan but you usually have to have a minimum 20% deposit or equity in an existing home.