Overseas Financing: 1% - 3% interest?

[dominick]

Hi All,

I notice interest rates in other countries like Hong Kong and Singapore are 1% - 3%??!!

Can anyone help me understand how it would be possible to obtain overseas financing at such low rates to purchase Australian property?

Surely this would open the doors to many opportunities to purchase many positive c/f properties in Australia if financing was available at these low rates.

I understand there are some hurdles and hoops to jump through (eg. foreign exchange rates, with holding tax) but I know it can be done, I just need to figure out how ?? !

What % with-holding tax would be charged? and can I structure using a foreign company / trust to legally work around it?

Any pointers would be much appreciated.

Of course I know I need to speak with a great accountant and lawyer but I would much appreciate gathering your thoughts first so I know what I should be asking them.

Thanks!!

 

[saul]

Hey dominick,

Wouldn?t it be nice to have these rates available to us. I can share a little on this topic as my business partner and I did in fact go through the process to take out a euro based loan for Australian property. Basically this is what I discovered.

A- You need to be earning an income in that particular currency and
B- Need to be a citizen

The only reason I was able to take advantage of the opportunity was because my business partner was living in Europe earning euro dollars and has a dual citizenship. Because we were jointly purchasing, I was able to benefit from the loan.

As far as withholding tax it was 10% in this scenario. Other things to be aware of though was that they only give you a 70% LTV so you are required to provide a 30% deposit.