Getting mortgage from Australia to purchase house in Ireland

Fondu

Hi Guys,

I know its easier to get loans in australia at the moment.I will be going to oz on whv visa and was wondering is there a possibility to get a mortgage in Austrailia to purchase investment property(s) in Ireland.

At the moment i have 3 let properties(no mortgages) earning me about 35k gross. Any net income from the properties are being saved to purchase other investment property. I have 60k in savings. I have a saving record and have 3k from the rental properties coming in on a monthly basis. I have no loans and my only credit history is a credit card i had for 5 years which i always paid off in time.

When i am in Australia, i will try to get work in my field however my priority will be to enjoy the year.

Australia is still going through a good spell so i was hoping it might be easier for me to get a loan or even a larger loan there so i can invest in more properties in Ireland.

Do any of you have any thoughts on this?

Ideo

Fondu wrote: »

Hi Guys,

I know its easier to get loans in australia at the moment.I will be going to oz on whv visa and was wondering is there a possibility to get a mortgage in Austrailia to purchase investment property(s) in Ireland.

At the moment i have 3 let properties(no mortgages) earning me about 35k gross. Any net income from the properties are being saved to purchase other investment property. I have 60k in savings. I have a saving record and have 3k from the rental properties coming in on a monthly basis. I have no loans and my only credit history is a credit card i had for 5 years which i always paid off in time.

When i am in Australia, i will try to get work in my field however my priority will be to enjoy the year.

Australia is still going through a good spell so i was hoping it might be easier for me to get a loan or even a larger loan there so i can invest in more properties in Ireland.

Do any of you have any thoughts on this?

No Oz bank will give you a mortgage - that idea is dead in the water.

Additionally, have you even thought about changes in FX rates, interest rates and what this would mean to your repayments? Also, do you own the 3 properties outright that you are letting?

Fondu

Ideo wrote: »

No Oz bank will give you a mortgage - that idea is dead in the water.

Additionally, have you even thought about changes in FX rates, interest rates and what this would mean to your repayments? Also, do you own the 3 properties outright that you are letting?

Yea i thought about the fx rates, however i if they were willing to give me a larger loan where i could afford to get more than one property, i would be willing to risk the fx rate as it can go both up and down.

Yea they are owned outright.

ceadaoin.

In order to get a loan you would have to have residency in Australia. There is no way any bank would give a mortgage to someone on holiday.

Eric Cartman

if you already own 3 properties outright and they are generating a rental income of 35k a year before you even do a days work, then I cant imagine a bank having a problem giving you a mortgage

Fondu

ceadaoin. wrote: »

In order to get a loan you would have to have residency in Australia. There is no way any bank would give a mortgage to someone on holiday.

Ok, that plan is a no go so.

Fondu

Eric Cartman wrote: »

if you already own 3 properties outright and they are generating a rental income of 35k a year before you even do a days work, then I cant imagine a bank having a problem giving you a mortgage

I just purchased my third property so the income for that property is just starting to come in.

I asked my bank if i am mortgage material before i left my job and i would have been able to get a mortgage(mind you i would have had an extra 33k in salary)

I know banks dont particularly like when people go on holidays such as mine.

When i return i will be looking for work again. What do you think my likely hood of getting a mortgage would be when i dont have a job to return to?

I think i will have about 100k in savings when i return. I would be hoping to buy another property of about 100k, use 50k of my own savings to get an LTV below 50pc.Current properties are worth about 500-600k total.

djimi

Im not sure that rental income is taken into account when applying for a mortgage (as it is not guaranteed income), so without a job Id say you are going to find it difficult to get a mortgage when you return.

Patrickheg

I'd forget about this plan. No bank in Australia will give you(no Australian banking record, on a temp visa) a mortgage, let alone one to buy property in a European country. From their side it would be hugely expensive to even get a charge on the property and enforcing a foreclosure would be even harder.

csm

I'm in Oz currently and have been itching to get together some cash to invest in Irish property (risky and all as that still is...).

You haven't got a hope of getting loan against collateral based outside of Australia, which produces an income stream that is not in Australian dollars. Certainly not for the level of loan you are looking at anyway (you'd have to be looking to borrow a lot more for them to even look at you.)

This isn't to say it's not possible to invest in Irish property using an Australian loan, but you need collateral based in Australia. An example is that I have a mortgage on a property here. I could take out a line of credit or loan extension against the equity in this property and then use that to invest in whatever I want, including Irish property. Whether it's a sensible investment is a different question of course.

barks1990

By any chance do you still have your communion money?

Trish56

You can only get a mortgage in Ireland for a property in Ireland unless you own property in another country and you get an equity release loan.

Since you have over 50% of the purchase price and you have no mortgages on property worth 500/600k you could approach the banks here based on the income you are already receiving and the rental you will earn on the new property. If you only borrowing 50% of the purchase price I think the banks will look favourably on it. They may need to take one of the other properties as additional security.
You will need your accountant to provide accounts for the existing properties.

Fondu wrote: »

Hi Guys,

I know its easier to get loans in australia at the moment.I will be going to oz on whv visa and was wondering is there a possibility to get a mortgage in Austrailia to purchase investment property(s) in Ireland.

At the moment i have 3 let properties(no mortgages) earning me about 35k gross. Any net income from the properties are being saved to purchase other investment property. I have 60k in savings. I have a saving record and have 3k from the rental properties coming in on a monthly basis. I have no loans and my only credit history is a credit card i had for 5 years which i always paid off in time.

When i am in Australia, i will try to get work in my field however my priority will be to enjoy the year.

Australia is still going through a good spell so i was hoping it might be easier for me to get a loan or even a larger loan there so i can invest in more properties in Ireland.

Do any of you have any thoughts on this?