Buy to let mortgages in Australia?

kaz101 · Mar 3rd 2004, 6:36 pm

We have our medicals in a few weeks but even before that we bought an apartment off plan in Melbourne. The apartment should be completed in August 2004 so I'm looking around for mortgages at the moment.

Is there such a thing as the buy to let mortgage in Australia? I've been searching on search engines and can't find it so I'm not sure as to whether it doesn't exist or whether it's called something else.

Thanks for any pointers in the right direction.

Karen

Bordy · Mar 3rd 2004, 6:41 pm

Wow, now you are organised. What area of Melbourne did you buy in??

kaz101 · Mar 3rd 2004, 6:56 pm

Quote:

Originally posted by Bordy
Wow, now you are organised. What area of Melbourne did you buy in??

Nah not really organised. We bought in Melbourne Tower which is on the South Bank near the Crowne Casino. It just seemed like a good deal and at that time the Aussie dollar was very weak. Now it looks like we'll be paying more

I've found some home investment loans but it looks like these may be for Australian residents only

We intend to buy property all over the world when we have the funds to do it

K.

Bordy · Mar 3rd 2004, 7:41 pm

Good Luck with the world Domination. I wouldn't think you would have any problems renting out in Southbank Kaz.

bondipom · Mar 3rd 2004, 8:02 pm

Quote:

Originally posted by kaz101
We have our medicals in a few weeks but even before that we bought an apartment off plan in Melbourne. The apartment should be completed in August 2004 so I'm looking around for mortgages at the moment.

Is there such a thing as the buy to let mortgage in Australia? I've been searching on search engines and can't find it so I'm not sure as to whether it doesn't exist or whether it's called something else.

Thanks for any pointers in the right direction.

Karen

Is the apartment still worth the amount you paid?

ABCDiamond · Mar 4th 2004, 12:13 am

Quote:

Originally posted by kaz101
We have our medicals in a few weeks but even before that we bought an apartment off plan in Melbourne. The apartment should be completed in August 2004 so I'm looking around for mortgages at the moment.

Is there such a thing as the buy to let mortgage in Australia? I've been searching on search engines and can't find it so I'm not sure as to whether it doesn't exist or whether it's called something else.

Thanks for any pointers in the right direction.

Karen

It's not called a "buy to let mortggae" here.
Just an "Investment Mortgage"

You would be best going through a specialist mortgage broker, specialising in Investment Properties, for that, as you are not a resident.

kaz101 · Mar 4th 2004, 6:19 am

Quote:

Originally posted by ABCDiamond
It's not called a "buy to let mortggae" here.
Just an "Investment Mortgage"

You would be best going through a specialist mortgage broker, specialising in Investment Properties, for that, as you are not a resident.

Thanks for that advice.

I'm not sure of the value of the apartment now since I haven't checked Melbourne prices. Buying off plan is always a gamble that prices will go up by the time it's completed, and as with any investment prices can go down as well as up.

K.

ABCDiamond · Mar 4th 2004, 6:33 am

Quote:

Originally posted by kaz101
Thanks for that advice.

I'm not sure of the value of the apartment now since I haven't checked Melbourne prices. Buying off plan is always a gamble that prices will go up by the time it's completed, and as with any investment prices can go down as well as up.

K.

This website http://www.homepriceguide.com.au/snapshot/
will give you an idea on property price moves in last 12 months, if you have the postcode.

HiddenPaw · Mar 4th 2004, 1:37 pm

The CBD/Docklands/Southbank market is still pretty stagnant but is expected to pick up in the next couple of years. Lenders are wary in these areas because of risk of re-sale value being less than purchase price. For this reason, when searching out a home loan, you may find the max LVR is quite low (loan to value ratio). If you have a decent deposit to put down though, this overcomes this problem. As ABC says, find a specialist mortgage company, or contact one of the major home loan advisors such as Aussie Home Loans or RAMS for starters.

There is a good article on melbourne investment property, and the current and predicted state of the market in Melbourne as a whole (not just city centre). The section 'Returns on Investment Properties" specifically mentions inner city:
http://www.propertyinvestorplanning..../melbourne.htm

Good luck with it all
HP

OzTennis · Mar 4th 2004, 3:30 pm

Quote:

Originally posted by kaz101
We have our medicals in a few weeks but even before that we bought an apartment off plan in Melbourne. The apartment should be completed in August 2004 so I'm looking around for mortgages at the moment.

Is there such a thing as the buy to let mortgage in Australia? I've been searching on search engines and can't find it so I'm not sure as to whether it doesn't exist or whether it's called something else.

Thanks for any pointers in the right direction.

Karen

Karen

ABC and HP jumped in with great advice before me. That's an excellent website HP pointed you to and I think she is being modest because my memory seems to tell me that she worked in the field of providing finance in Melbourne. She has posted great info about the Melbourne property market, particularly the inner city area.

A old schoolfriend of mine owns 3 investment properties in Docklands and has managed to rent a couple of them without too much bother. He and his wife have just bought a hotel in Tasmania and they are keeping 1 flat for when they visit their parents in Melbourne. When the roof is open at Telstra Dome they can watch the matches from his flat!

Was it a Central Equity property that you purchased? I remembered in August when we were walking along Southbank and on the opposite corner to the Casino was a display centre for a new development by another company right behind their showroom. We were pressed for time and couldn't go in but I wouldn't be surprised if this is the new block you bought in.

OzTennis

kaz101 · Mar 4th 2004, 5:12 pm

Quote:

Originally posted by OzTennis
Karen

ABC and HP jumped in with great advice before me. That's an excellent website HP pointed you to and I think she is being modest because my memory seems to tell me that she worked in the field of providing finance in Melbourne. She has posted great info about the Melbourne property market, particularly the inner city area.

A old schoolfriend of mine owns 3 investment properties in Docklands and has managed to rent a couple of them without too much bother. He and his wife have just bought a hotel in Tasmania and they are keeping 1 flat for when they visit their parents in Melbourne. When the roof is open at Telstra Dome they can watch the matches from his flat!

Was it a Central Equity property that you purchased? I remembered in August when we were walking along Southbank and on the opposite corner to the Casino was a display centre for a new development by another company right behind their showroom. We were pressed for time and couldn't go in but I wouldn't be surprised if this is the new block you bought in.

OzTennis

Thanks everyone for all the great advice.

Yes it was from Central Equity but we bought it from a presentation here (UK) nearly 2 years ago.

Karen

miriam · Mar 4th 2004, 10:51 pm

We bought a flat in Melbourne Tower as well - we have been recently told that it won't complete until end of November 2004 - despite the bad press the market rates are still ok although the capital value has depreciated -

what floor did you buy?

jhighlo2001 · Sep 1st 2004, 7:56 pm

Hi Guys,

I too brought a Central Equity flat in Melbourne Tower 2 years ago and am due to complete.

Just had the flat valued at 22% LESS than purchase price. Have heard that others have had it valued at over 40% less! :scared: This makes it pretty impossible to get finance on some of these flats! Anyway... I'm using SMATS (www.smats.com) to do the mortage and they seem nice people (based in London). But the problem is the fact that the flats were SOOO overvalued when purchased and that CE have a bad name for quality in Australia that this is proving a problem gaining finance.

CE took advantage of UK buyers in London a) not knowing the AUS market b) and spinning "lies" in sales sessions which ended up by the "inexperienced" buyer signing a binding contract that day. I have since done by research and found out I am one of many victims (an expensive way to learn)

I am considering taking legal action against CE and would love to hear from any investors that felt they were misled in the sales pitch.

Cheers

John

miriam · Sep 2nd 2004, 12:38 am

i'm sorry to hear that you have had such a problem gaining finance. I would be interested to talk to you - we bought in melbourne tower. we have had no problem with regard finance offers but havae extended our completion date until December.

the property market in sydney and melbourne is falling and this is not limited to Southbank area - I live in sydney and prices in my area [ rose bay] have dropped 10%. My husband works for Multiplex who built CE flats [ construction company] and since they are building wembley stadium lets hope they're not bad builders! Do you mean the building spec?

I am lawyer adn can't see the basis for a legal claim against CE. What sales pitch was incorrect -on whose analysis? Would be happy to speak to you to discuss

Miriam

I too brought a Central Equity flat in Melbourne Tower 2 years ago and am due to complete.

Just had the flat valued at 22% LESS than purchase price. Have heard that others have had it valued at over 40% less! :scared: This makes it pretty impossible to get finance on some of these flats! Anyway... I'm using SMATS (www.smats.com) to do the mortage and they seem nice people (based in London). But the problem is the fact that the flats were SOOO overvalued when purchased and that CE have a bad name for quality in Australia that this is proving a problem gaining finance.

CE took advantage of UK buyers in London a) not knowing the AUS market b) and spinning "lies" in sales sessions which ended up by the "inexperienced" buyer signing a binding contract that day. I have since done by research and found out I am one of many victims (an expensive way to learn)

I am considering taking legal action against CE and would love to hear from any investors that felt they were misled in the sales pitch.

Cheers

John[/quote]

Mar 3rd 2004, 6:36 pm	#1
kaz101 Senior Member Joined: Dec 2003 Location: Mt. Gambier, South Australia Posts: 130	Buy to let mortgages in Australia? We have our medicals in a few weeks but even before that we bought an apartment off plan in Melbourne. The apartment should be completed in August 2004 so I'm looking around for mortgages at the moment. Is there such a thing as the buy to let mortgage in Australia? I've been searching on search engines and can't find it so I'm not sure as to whether it doesn't exist or whether it's called something else. Thanks for any pointers in the right direction. Karen __________________ Work from home anywhere in the world through the internet! Free "Think and Grow Rich" ebook here to get you started. Now in Australia since July 2007 - and they said I couldn't get in!

Sep 1st 2004, 7:56 pm	#13
jhighlo2001 New Member Joined: Sep 2004 Posts: 2	Central Equity Hi Guys, I too brought a Central Equity flat in Melbourne Tower 2 years ago and am due to complete. Just had the flat valued at 22% LESS than purchase price. Have heard that others have had it valued at over 40% less! :scared: This makes it pretty impossible to get finance on some of these flats! Anyway... I'm using SMATS (www.smats.com) to do the mortage and they seem nice people (based in London). But the problem is the fact that the flats were SOOO overvalued when purchased and that CE have a bad name for quality in Australia that this is proving a problem gaining finance. CE took advantage of UK buyers in London a) not knowing the AUS market b) and spinning "lies" in sales sessions which ended up by the "inexperienced" buyer signing a binding contract that day. I have since done by research and found out I am one of many victims (an expensive way to learn) I am considering taking legal action against CE and would love to hear from any investors that felt they were misled in the sales pitch. Cheers John

Sep 2nd 2004, 12:38 am	#14
miriam Member Joined: Oct 2003 Posts: 28	Re: Central Equity i'm sorry to hear that you have had such a problem gaining finance. I would be interested to talk to you - we bought in melbourne tower. we have had no problem with regard finance offers but havae extended our completion date until December. the property market in sydney and melbourne is falling and this is not limited to Southbank area - I live in sydney and prices in my area [ rose bay] have dropped 10%. My husband works for Multiplex who built CE flats [ construction company] and since they are building wembley stadium lets hope they're not bad builders! Do you mean the building spec? I am lawyer adn can't see the basis for a legal claim against CE. What sales pitch was incorrect -on whose analysis? Would be happy to speak to you to discuss Miriam I too brought a Central Equity flat in Melbourne Tower 2 years ago and am due to complete. Just had the flat valued at 22% LESS than purchase price. Have heard that others have had it valued at over 40% less! :scared: This makes it pretty impossible to get finance on some of these flats! Anyway... I'm using SMATS (www.smats.com) to do the mortage and they seem nice people (based in London). But the problem is the fact that the flats were SOOO overvalued when purchased and that CE have a bad name for quality in Australia that this is proving a problem gaining finance. CE took advantage of UK buyers in London a) not knowing the AUS market b) and spinning "lies" in sales sessions which ended up by the "inexperienced" buyer signing a binding contract that day. I have since done by research and found out I am one of many victims (an expensive way to learn) I am considering taking legal action against CE and would love to hear from any investors that felt they were misled in the sales pitch. Cheers John[/quote]

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Mar 3rd 2004, 6:41 pm	#2
Bordy The Godfather Joined: Feb 2004 Location: South East Suburbs of Melbourne Posts: 7,324	Wow, now you are organised. What area of Melbourne did you buy in??

Mar 3rd 2004, 7:41 pm	#4
Bordy The Godfather Joined: Feb 2004 Location: South East Suburbs of Melbourne Posts: 7,324	Good Luck with the world Domination. I wouldn't think you would have any problems renting out in Southbank Kaz.

Mar 4th 2004, 1:37 pm	#9
HiddenPaw Senior Member Joined: Oct 2003 Location: Nappyland Posts: 2,889	The CBD/Docklands/Southbank market is still pretty stagnant but is expected to pick up in the next couple of years. Lenders are wary in these areas because of risk of re-sale value being less than purchase price. For this reason, when searching out a home loan, you may find the max LVR is quite low (loan to value ratio). If you have a decent deposit to put down though, this overcomes this problem. As ABC says, find a specialist mortgage company, or contact one of the major home loan advisors such as Aussie Home Loans or RAMS for starters. There is a good article on melbourne investment property, and the current and predicted state of the market in Melbourne as a whole (not just city centre). The section 'Returns on Investment Properties" specifically mentions inner city: http://www.propertyinvestorplanning..../melbourne.htm Good luck with it all HP

Mar 4th 2004, 10:51 pm	#12
miriam Member Joined: Oct 2003 Posts: 28	We bought a flat in Melbourne Tower as well - we have been recently told that it won't complete until end of November 2004 - despite the bad press the market rates are still ok although the capital value has depreciated - what floor did you buy?