Purchasing Property In Sydney

[Thinkbig]

Hi guys and gals

(A) I'm thinking of investing in a small property in Sydney that costs about AU$200,000.

Let's say I'm able to put a downpayment of AU$50,000, and taking up a loan of $150,000 - which bank in Singapore does this? I asked DBS and they said they don't do overseas properties.

Do I approach Aussie banks?

(B) An agent friend of mine also said that if I sell my current HDB today, I'm not able to purchase an overseas property within 5 years. Is it really true that they're that strict? Gosh.

Thank you for your input

 

[wobbles]

Re: Purchasing Property In Sydney

Westpac and ANZ might be more helpful. You may need to show you have sufficient collateral or funds before they will loan you the AUD. I know, it's stupid, but that's how banks work. Hope that helps.

Hope you didn't get suckered into buying. Sydney is huge. You seriously don't wanna be holding on to a $200000 property in Mt Druitt or Blacktown!

 

[davidtch]

Re: Purchasing Property In Sydney

Hope you didn't get suckered into buying. Sydney is huge. You seriously don't wanna be holding on to a $200000 property in Mt Druitt or Blacktown!

Is Sydney still growing? If yes, no issue in 10 yrs

 

[Oilman]

Re: Purchasing Property In Sydney

42 Wallaby Way, Sydney?

 

[wobbles]

Re: Purchasing Property In Sydney

42 Wallaby Way, Sydney?

Your run lion den ah?

 

[Oilman]

Re: Purchasing Property In Sydney

Not mine. You dunno who lives at 42 Wallaby Way? Hee hee.

 

[jasonmaxima]

Re: Purchasing Property In Sydney

I believe as foreigners, australia housing rules state that we cannot buy resale / used properties in Australia, ONLY BRAND NEW ones.

but I'm sure there can be tons of ways around this...eg, setting up a company / pvt equity fund etc etc.

 

[C3P0]

Re: Purchasing Property In Sydney

Yes you can look for the Aussie banks' branches in Singapore for the financing.

But I don't know about the HDB rules or Aussie rules, that one must ask our resident sart sart investors.
I bro, never say wobbly or JM.

 

[Doodles]

Re: Purchasing Property In Sydney

My 2 cents worth - buy property in oz now try not leverage if possible. Gone are the days of healthy capital gains. When you borrow in aud you pay oz interest rates, not cheap.

Also you have forex considerations, aud is strong now, depending on what view you have.

As some have mentioned, you have the foreign investments review board considerations. As a foreigner you can buy new developments but when you resell your scope is much smaller cos foreigner cannot buy.

 

[Forrestgum]

Purchasing Property In Sydney

You can try talk to OCBC.

 

[wobbles]

Re: Purchasing Property In Sydney

Not mine. You dunno who lives at 42 Wallaby Way? Hee hee.

Oooh... Finding Nemo issit? Hahahaha

 

[Thinkbig]

Re: Purchasing Property In Sydney

Thanks for all your replies guys! So helpful!

It's actually a small tiny hostel near darling Harbour, right smack in the city.

So if it's true foreigners must buy new, that means I'm out right? Cos this property is resale

Forex wise, I'm thinking of migrating there in a couple of years time. May be good to place money there now? The sad thing is I can't get tax rebates like the locals do with IR financing.

Teach me!

 

[Forrestgum]

Purchasing Property In Sydney

It's best you speak to the tax people over there to get a better picture.

 

[wobbles]

Re: Purchasing Property In Sydney

Thanks for all your replies guys! So helpful!

It's actually a small tiny hostel near darling Harbour, right smack in the city.

So if it's true foreigners must buy new, that means I'm out right? Cos this property is resale

Forex wise, I'm thinking of migrating there in a couple of years time. May be good to place money there now? The sad thing is I can't get tax rebates like the locals do with IR financing.

Teach me!

Confirmed - only PRs and citizens can buy resale. Investors and foreign talents must buy 1st hand (new or off the plan) projects.

 

[peckhs]

Re: Purchasing Property In Sydney

It's actually a small tiny hostel near darling Harbour, right smack in the city.

hostel? or apartment which is used as a hostel?
you can buy if it is a business premises provided you register a company in Sydney. There are many agents in Sydney who can help. Tonnes in Chinatown in fact.

If it is an apartment, foriegners can only buy new. But you cannot sell to foreigners later, only to citizens and PRs. Even if you die, you also will not be able to will it to your children. It must be sold.

Another way to purchase resale property is to buy through a business and register it as the place of business. Beware though the local government will check if it is genuinely being used as a business place or not. They are pretty anal on that. However, you will have to sell off the property once the business operation. Not sure about apartments, but usually people buy houses with this entry point.

And AUD200k near darling harbour? I would say that's a steal.... too cheap to be true. Just be careful and make sure you do an inspection before committing..

and to add, you might want to consider opening a fixed term deposit account with some banks in Sydney to park your money. Generally a fixed term account will earn you more than 4% p.a.
It used to be more than 5%, but has since gone down.


good luck

 

[peckhs]

Re: Purchasing Property In Sydney

Confirmed - only PRs and citizens can buy resale. Investors and foreign talents must buy 1st hand (new or off the plan) projects.

add to that, you can actually buy an EMPTY piece of land and build a brand new house...

 

[yogi_lite]

Re: Purchasing Property In Sydney

Westpac and NAB here do SGD dollar loans with interest rates of about 2.3% to 2.4%. BUT they will not loan to apartments less than 50sqm and minimum loan size is actually AUD500k. Moreover it is a hostel and not a residential apartment and I know these banks are reluctant to take collateral on service apartments. Loan quantum is typically 65% for SGD loan, with possiblity of interest only loan for the first 3yrs.

You next best bet is to approach the banks in Aust. They can loan you up to 80% at interest rates of abt 5.5%. Interest rates are expected to go down but you never know. Aust ppty mkt is soft right now so don't hope too much for capital appreciation in the near future.

Just sharing what I know as I am in the process of completion of an apt in Melbourne. Just curious, why Sydney?

 

[Skin Fir]

Re: Purchasing Property In Sydney

I believe as foreigners, australia housing rules state that we cannot buy resale / used properties in Australia, ONLY BRAND NEW ones.

but I'm sure there can be tons of ways around this...eg, setting up a company / pvt equity fund etc etc.

Even me also hear about the same as you are describing.The foriegner cannot buy the resale properties except of the new ones.Some sort of rules must be there who will help you to get the right assistant.For this,you must concern the law consultants in Austrailia that they would help you to find the way.

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gold coast conveyancing