pearler Posted May 30, 2010 Share Posted May 30, 2010 This might be a daft one and if it is i apologise in advance. I have some equity in my UK property (which isn't selling so we will try and rent it) and was wondering wether Aussie banks would consider this when buying a property in Australia? Link to comment Share on other sites More sharing options...
Conniebygaslight Posted May 30, 2010 Share Posted May 30, 2010 This might be a daft one and if it is i apologise in advance. I have some equity in my UK property (which isn't selling so we will try and rent it) and was wondering wether Aussie banks would consider this when buying a property in Australia? I wouldn't think so to be honest- they aren't really into 'thinking outside the box'- although not sure the UK would do it if things were reversed as they are cautious now given the economic climate. The aussie banks pride themselves on being very old school in terms of lending as they weren't really affected by the downturn because they aren't as frivolous with their lending if you rent your house out in the UK- then you can obviously rent here-you are still on the housing ladder- just in one place not 2. Link to comment Share on other sites More sharing options...
Quinkla Posted May 31, 2010 Share Posted May 31, 2010 No - foreign equity is not useable as it would be almost impossible for an Australian lender to ever foreclose a mortgage on an overseas property. Link to comment Share on other sites More sharing options...
Peach Posted May 31, 2010 Share Posted May 31, 2010 The aussie banks pride themselves on being very old school in terms of lending as they weren't really affected by the downturn because they aren't as frivolous with their lending Sorry to go off topic, but if that statement were true average house prices in Australia wouldn't be 7+ times average salaries... Link to comment Share on other sites More sharing options...
Conniebygaslight Posted May 31, 2010 Share Posted May 31, 2010 Sorry to go off topic, but if that statement were true average house prices in Australia wouldn't be 7+ times average salaries... Sorry peach are you saying that Aussie lenders give their money away as easy as the UK did before the Credit Crunch? Link to comment Share on other sites More sharing options...
Peach Posted May 31, 2010 Share Posted May 31, 2010 to some degree yes.. house price inflation is fueled by readily available credit. I am not saying that the Aussie banks follow all the worst practices of the UK/US banks, but they are allowing people to borrow a damn sight more than what would once have been considered average borrowing (3.5x salary, 25 year mortgage terms).. Link to comment Share on other sites More sharing options...
Conniebygaslight Posted May 31, 2010 Share Posted May 31, 2010 to some degree yes.. house price inflation is fueled by readily available credit. I am not saying that the Aussie banks follow all the worst practices of the UK/US banks, but they are allowing people to borrow a damn sight more than what would once have been considered average borrowing (3.5x salary, 25 year mortgage terms).. We've been told by several mortgage peole that australa pride themselves in more 'secure lending' and this is one of the reason's hey were not as affected. If you think I'm wrong then fine-just passing on what I've been told.:spinny: Link to comment Share on other sites More sharing options...
sgperry Posted May 31, 2010 Share Posted May 31, 2010 A few years ago my UK bank did allow me to take out some equity from my home in London and use it to buy an apartment on the Sunshine Coast. It was no problem at all. As it turns out, it was one of the best things I ever did given the exchange rate at the time, home prices in Oz back then and the interest rates here now. Sadly, I don't believe they do it anymore........ they used to also allow a lot of Brits to do it to buy places in Spain and so on. Ah, the days of easy lending! Link to comment Share on other sites More sharing options...
Peach Posted May 31, 2010 Share Posted May 31, 2010 We've been told by several mortgage peole that australa pride themselves in more 'secure lending' and this is one of the reason's hey were not as affected. If you think I'm wrong then fine-just passing on what I've been told.:spinny: No offense mean't. Aside from what you've been told, what is your actual observation? Does a 7x salary loan (to buy your average Sydney or Melbourne house) leant over 30 years seem like frugal lending? Link to comment Share on other sites More sharing options...
Conniebygaslight Posted May 31, 2010 Share Posted May 31, 2010 No offense mean't. Aside from what you've been told, what is your actual observation? Does a 7x salary loan (to buy your average Sydney or Melbourne house) leant over 30 years seem like frugal lending? No it doesn't you are right and none taken -sorry to OP for moving off post:spinny: Link to comment Share on other sites More sharing options...
Quinkla Posted May 31, 2010 Share Posted May 31, 2010 A few years ago my UK bank did allow me to take out some equity from my home in London and use it to buy an apartment on the Sunshine Coast. It was no problem at all. As it turns out, it was one of the best things I ever did given the exchange rate at the time, home prices in Oz back then and the interest rates here now. Sadly, I don't believe they do it anymore........ they used to also allow a lot of Brits to do it to buy places in Spain and so on. Ah, the days of easy lending! That's the other way round to what the OP wanted to do - that was use a UK property to get equity from an Australian bank. Link to comment Share on other sites More sharing options...
sgperry Posted May 31, 2010 Share Posted May 31, 2010 yes, I realise that :-) Was just using it as an example of how "slacker" UK banks were in the past. I imagine back then that Aussie banks were probably similar. Link to comment Share on other sites More sharing options...
Guest Waz2Oz Posted November 17, 2010 Share Posted November 17, 2010 I asked the same thing after I arrived and the answer was no, for many good reasons so I think you'll be out of luck. Best advice I can give you on this is get some professional advice from a financial planner both in the UK and in Oz as its a big topic Link to comment Share on other sites More sharing options...
pearler Posted November 19, 2010 Author Share Posted November 19, 2010 Thank you for the feedback. There appear to be some internet sites which advertise overseas property investment (in Australia) using UK property equity. I would appreciate anyone's views on these Link to comment Share on other sites More sharing options...
Mongrel Posted November 19, 2010 Share Posted November 19, 2010 Thank you for the feedback. There appear to be some internet sites which advertise overseas property investment (in Australia) using UK property equity. I would appreciate anyone's views on these There als was websites advertising you could get hold of your pension be careful Link to comment Share on other sites More sharing options...
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