Are you an expat wanting to buy real estate in Australia? Are you just interested to find out what it would be like to borrow money when we’re living overseas? I wanted to discuss a few things that we need to keep in mind that are really, really important and can make or break that next purchase for someone who is an expat so first thing is there’s expat friendly banks and there’s expat not so friendly banks. So we need to find a mortgage broker that is across who is and who isn’t. We don’t want to associate with an expat non-friendly bank because their borrowing capacity is going to be much lower for you than someone that has an appetite for that, okay.
First thing, well the reasons why, first one is the foreign currency discount. Some banks apply it some don’t, there can be a 20% difference in that discount or the taking into account the currency conversion so be mindful of that one second one is the Australian tax rates versus tax rates where you may be living overseas, right, if you’re paying if you’re paying 15% tax over in another country and the tax rate over here is 30%, it’s a big difference when it comes into running expenses of your gross income which does have an effect. Some banks apply that, some don’t.
Living expenses and rent expenses, rent expense for when you are renting out a property and the calculation associated with that and maybe even the rent overseas right, also taking into account the living expenses of where you are living at that time there can be a differential of maybe 20 to 25% in how the banks calculate. So all in all, with those four things factored in, it’s how the banks assess those four key areas and whether they’re applying discounts or assessing you harder based on their criteria and their lending policies right, so just wanted to talk to you about that today, if you if you’re in a position where you want to buy real estate in Australia but you’re living overseas absolutely there’s a there’s a will and there’s a way as we always say but look in the example that we did one person could borrow $200,000 non-friendly bank versus $600,000 as an expat friendly bank, so it’s a big difference and it can make or break your next purchase so please get in contact with someone who specializes in that space.
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