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Investment mortgage - do I need a salary

Investment mortgage - do I need a salary

Old May 9th 2002, 3:30 pm
  #1  
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Default Investment mortgage - do I need a salary

Hopefully we will be migrating to Brisbane later this year. Our long-term plan is to invest in property and we'd like to get started as soon as we arrive.

We will be taking enough money with us to put down sizeable deposits but we would like the majority to be financed by mortgages.

All the mortgages I have looked at in Australia require you to have an income from employment. This is strange because in the UK you just have to show that you will receive enough rent to easily cover the mortage and employment income is usually irrelevant.

Although we will eventually take up employment in Australia, this may take some time and we don't want to be shut out of the property market in that time. Nor do we want to buy properties outright as this will tie up a lot of money and not have any tax benefits.

Does anyone know if Australia has the equivalent of a 'Buy-to-let' mortage ? If so, where should I start looking ?

Cheers
Nick
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Old May 9th 2002, 9:20 pm
  #2  
Tony Bryer
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Default Re: Investment mortgage - do I need a salary

In article <[email protected]>, Etlniwd wrote:
    > All the mortgages I have looked at in Australia require you to have an income from
    > employment. This is strange because in the UK you just have to show that you will
    > receive enough rent to easily cover the mortage and employment income is usually
    > irrelevant.

Commonwealth Bank sent me their detailed rules for buy to let loans a while back
(they may have changed since, or just apply to people like me, expats buying off
plan). Basically they require a minimum 20% deposit. They calculate the rental income
assuming that you are getting 70% occupancy (e.g. if the actual rent is 6% take
4.2%). If this will not cover the mortgage repayments (calculated on the basis that
the mortgage is to be paid off when you're 65 if this is a shorter time than the
normal mortgage term) you need to show you have sufficient income from employment and
other sources to make up the shortful (lots of detailed rules about deductions
including 2.5% of the combined credit limits of your cards even if you haven't got
any outstanding balances). Anything much over a 50% loan and you'll be needing to
pass the income test.
--
Tony Bryer
 
Old May 12th 2002, 3:20 am
  #3  
Doug And Maggie
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Default Re: Investment mortgage - do I need a salary

Have a look at www.investclub.com.au

I know that they have helped people living overseas to buy property in Australia,
particularly Brisbane.

I should declare that we work with them so am biased but have a look yourself and see
what you think.

Perhaps you can get started before you arrive while you do have an income.

Doug and Maggie

"etlniwd" <[email protected]> wrote in message
news:[email protected]...
    > Hopefully we will be migrating to Brisbane later this year. Our long-term plan is
    > to invest in property and we'd like to get started as soon as we arrive.
    >
    > We will be taking enough money with us to put down sizeable deposits but we would
    > like the majority to be financed by mortgages.
    >
    > All the mortgages I have looked at in Australia require you to have an income from
    > employment. This is strange because in the UK you just have to show that you will
    > receive enough rent to easily cover the mortage and employment income is usually
    > irrelevant.
    >
    > Although we will eventually take up employment in Australia, this may take some
    > time and we don't want to be shut out of the property market in that time. Nor do
    > we want to buy properties outright as this will tie up a lot of money and not have
    > any tax benefits.
    >
    > Does anyone know if Australia has the equivalent of a 'Buy-to-let' mortage ? If so,
    > where should I start looking ?
    >
    > Cheers Nick
    >
    >
    >
    > --
    > Posted via http://britishexpats.com
 

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