Australian home loan interest rates are falling fast with many experts predicting they have a lot further to fall. However according to the November 2008 RBA reports house and unit prices are actually recovering everywhere except Perth. With first home buyers eligible for up to $21,000 from the Federal Governments First Home Buyers Scheme and with rental investment property demand and rental returns continuing to increase the Australian property market looks downright promising. So despite the gloom and doom, property in Australia looks like a good option for many people.
However beware there is a risk that some regions such as those currently experiencing a mining boom may suffer substantial
negative capital growth if there is an economic downturn particularly
if mining is affected by a downturn in Chinese demand.
No Deposit or 100% Investment Loans or 100% Investment Borrowing
We are often asked for 100% investment loans, usually by
investment
beginners who misunderstand the difference between a 100% loan and 100%
borrowing. There are some 100% investment loans still on the market
however any loan over 80% LVR requires LMI (lenders mortgage insurance)
which on 100% would be around 3.3% of the loan amount - ouch!
Before we proceed, for lenders 100% is the purchase price or
valuation - not the total cost. A 100% loan = 100% of the purchase price or valuation whichever is lowest.
Many savvy investors leverage the equity in other property, often
their homes, in order to borrow 100% of the total cost, not just the
purchase price. The following is a Flash demonstration of a very
basic structure to achieve this goal. Click on the image below to
advance the slideshow or use the button on the bottom right of the
image to enlarge to full screen.
We need to stress that this is not
tax advice, you should seek advice on your individual circumstances
from a qualified tax adviser.
Though we're a mortgage broker who pays you a rebate, we pride
ourselves on prompt first class personal service to overseas customers
looking at buying a home in Australia. As our testimonials confirm, we
have exceeded the expectations of many of our clients and will
endeavour to exceed yours. (Home buyers from outside Australia should
see below for more information about non-resident investment details).
Over half of all our loans are done virtually, using fax,
email and good old fashioned post. We do home loans for people from all
over the world in this way. However we can arrange a broker to visit
you in Melbourne, Sydney, Adelaide and Brisbane plus several regional
locations. Our contract brokers are paid a flat fee with no incentive
to offer you one product over another and are available to advise you
on your situation.
We keep your hassles and our costs down.
Click here to
go to our express inquiry form or call 1300
137 586. We're confident you'll appreciate the Peach Home Loans
service!
