Australian real estate investment and your finance decision



So you have purchased an Australian investment property, your finance decision will ultimately be the single biggest contributing factor. Most overseas real estate investors have purchased their property off-the-plan and 1-2 years later the developers and lawyers make contact to put you on notice that completion is nearing and that settlement is required.

By Scott O. Talbot


With only 30-60 days notice, foreign property investors need to quickly get their finances in order, contact a banker, fill out paper work and fingers crossed the funding is ready in time for the property settlement date.




Understandably , property developers have been funding the construction and all the associated costs from the day of the launch and now, are eager to be paid. The other consideration for the property developer is that in a finally tuned schedule the entire project will be settled within 7-14 days. 100-200 individual purchasers, each with there own lawyers and banks that need to attend the developers law firm on a scheduled day to present the final funds in exchange for the transfer of land that entitles the overseas purchaser to the Title of Ownership.


This is when the last minute panic begins.

With only 30-60 days notice, foreign property investors need to quickly get their finances in order, contact a banker, fill out paper work and fingers crossed the funding is ready in time for the property settlement date.

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Australia Real Estate loan - property finance

Whilst the legal side of this final transaction is seamless and handled by experienced law firms, the finance side of the transaction requires some early planning from the purchaser.


The internet is a wonderful portal in the last two decades but, can also offer so many options it can become confusing on what is the best lending offer and with some lenders placing restrictions on non Australian resident lenders.

With the keywords “australia investment loan” placed into your Google search, hundreds of options are available. From individual banks to brokers, the options are many and confusing.

What does not turn up in search engines is specialised products not available to the general public and limited to only to specific types of borrowers.

For example, the offshore loan facility recently announced by UCHK is not available to the general public and offered on an individual basis to a handful of property investment firms.

The overseas real estate investor with only 30-60 days to organise their finance, now has to make the 2nd most important decision regarding their Australian investment.

The typical Australian (retail) loan rate is 4.75% as at May 2015. On a $500,000 investment property purchase, the maximum lending ratio is 80% of the purchase price therefor, a loan of $400,000 is needed to complete the settlement process.

$400,000 @ 4.75% = $19,000 in interest per year.

In comparison, the offshore multi currency loan or Australia Dollar loan available to UCHK clients has a much better result with a savings of approximately $10,000 per year.

$400,000 @ 2.25%* = $9,000 in interest per year.