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. http://uchkconsulting.com/australia-property-investment-loan-finance-comparison.php The simple choice of the best financial package can be the difference of an investment property being negatively geared (wherein you will need to top up any shortfall from rental income) verse positively geared with an offshore loan.

1. 22/05/2015 8:35 amAustralia Offshore Loan - uchkconsulting.com
Page 1 of 3http://uchkconsulting.com/australia-property-investment-loan-finance-comparison.html
So you have purchased an Australian investment property, your financeSo you have purchased an Australian investment property, your finance
decision will ultimately be the single biggest contributing factor whetherdecision will ultimately be the single biggest contributing factor whether
you win or loose money.you win or loose money.
Most overseas real estate investors have purchased their property off-the-plan and 1-2Most 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 thatyears later the developers and lawyers make contact to put you on notice that
completion is nearing and that settlement is required.completion is nearing and that settlement is required.
This is when the last minute panic begins.This is when the last minute panic begins.
With only 30-60 days notice, foreign property investors need to quickly get their finances inWith 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 fororder, contact a banker, fill out paper work and fingers crossed the funding is ready in time for
the property settlement date.the property settlement date.
Multi Currency offshore loans at 1.75% - 2.25%*Multi Currency offshore loans at 1.75% - 2.25%*
Understandably, property developers have been funding the construction and all theUnderstandably, 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.associated costs from the day of the launch and now, are eager to be paid. The otherThe other
consideration for the property developer is that in a finally tuned schedule the entire project willconsideration for the property developer is that in a finally tuned schedule the entire project will
be settled within 7-14 days.be settled within 7-14 days. 100-200 individual purchasers, each with there own lawyers and100-200 individual purchasers, each with there own lawyers and
banks that need to attend the developers law firm on a scheduled day to present the finalbanks 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 offunds in exchange for the transfer of land that entitles the overseas purchaser to the Title of
Ownership.Ownership.
Whilst the legal side of this final transaction is seamless and handled by experienced lawWhilst 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.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,The internet is a wonderful portal in the last two decades but, can also offer so many options itcan also offer so many options it
can become confusing on what is the best lending offer and with some lenders placingcan become confusing on what is the best lending offer and with some lenders placing
restrictions on non Australian resident lenders.restrictions on non Australian resident lenders.
"With the keywords “australia investment loan” placed into your Google search,"With the keywords “australia investment loan” placed into your Google search,
hundreds of options are available. From individual banks to brokers, the options arehundreds of options are available. From individual banks to brokers, the options are
many and confusing "many and confusing "
What does not turn up in search engines is specialised products not available to the generalWhat 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.public and limited to only to specific types of borrowers.
Loan Comparision

2. 22/05/2015 8:35 amAustralia Offshore Loan - uchkconsulting.com
Page 2 of 3http://uchkconsulting.com/australia-property-investment-loan-finance-comparison.html
For example, the offshore loan facility recently announced by UCHK is not available to theFor 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.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, nowThe 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.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.The typical Australian (retail) loan rate is 4.75% as at May 2015. On a $500,000 investmentOn a $500,000 investment
property purchase, the maximum lending ratio is 80% of the purchase price therefor, a loan ofproperty 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 is needed to complete the settlement process.
$400,000 @ 4.75% = $19,000 in interest payments per year.$400,000 @ 4.75% = $19,000 in interest payments per year.
In comparison, the offshore multi currency loan or Australia Dollar loan available to UCHKIn 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.clients has a much better result with a savings of approximately $10,000 per year.
$400,000 @ 2.25%* = $9,000 in interest payments per year.$400,000 @ 2.25%* = $9,000 in interest payments per year.
The simple choice of the best financial package can be the difference of an investmentThe simple choice of the best financial package can be the difference of an investment
property being negatively geared (wherein you will need to top up any shortfall from rentalproperty being negatively geared (wherein you will need to top up any shortfall from rental
income) verse positively geared with an offshore loan.income) verse positively geared with an offshore loan.
"The simple choice of the best financial package can be the difference of an investment"The simple choice of the best financial package can be the difference of an investment
property being negatively geared (wherein you will need to top up any shortfall fromproperty being negatively geared (wherein you will need to top up any shortfall from
rental income) verse positively geared with an offshore loan."rental income) verse positively geared with an offshore loan."
For the benefit of new Australiann property investors, the following figures step out theFor the benefit of new Australiann property investors, the following figures step out the
individual typical expenses and financial outcomes for each bank finance scenario:individual typical expenses and financial outcomes for each bank finance scenario:
A Sample Property Investment - Settlement Cash FlowA Sample Property Investment - Settlement Cash Flow
Full Purchase Price: $500,000Full Purchase Price: $500,000
Funds Required from the Purchaser:Funds Required from the Purchaser:
Initial 10% holding deposit: - $50,000Initial 10% holding deposit: - $50,000
Further equity at settlement:Further equity at settlement: - $50,000- $50,000
Loan Fees - $1,200 (Typical cost of a loan)Loan Fees - $1,200 (Typical cost of a loan)
Legal FeesLegal Fees - $1,500 (Your lawyer to represent you)- $1,500 (Your lawyer to represent you)
Stamp Duty - $2,600 (assuming off-the-plan)Stamp Duty - $2,600 (assuming off-the-plan)
Total out of pocket expenses:Total out of pocket expenses: $105,300$105,300
Following we get to examine the annual cash flow of a 70% Australian loan at 4.75 on aFollowing we get to examine the annual cash flow of a 70% Australian loan at 4.75 on a
$500,000 property investment, the costs and income:$500,000 property investment, the costs and income:
Interest on loan - $16,625 (@ 4.75%)Interest on loan - $16,625 (@ 4.75%)
Council Rates -$900Council Rates -$900
Water Rates -$300Water Rates -$300
Owners Corp - $3,000Owners Corp - $3,000

3. 22/05/2015 8:35 amAustralia Offshore Loan - uchkconsulting.com
Page 3 of 3http://uchkconsulting.com/australia-property-investment-loan-finance-comparison.html
Agent Management - $1,750Agent Management - $1,750
Agent Letting Fee - $500Agent Letting Fee - $500
Landlord Insurance - $300Landlord Insurance - $300
Vacancy Rate Allowance - $1,000Vacancy Rate Allowance - $1,000 (2 Weeks)(2 Weeks)
Total Cost:Total Cost: - $24,375- $24,375
Rental Income EstRental Income Est $25,000$25,000
Annual Income: - $625Annual Income: - $625
Whilst the running costs of the property are unavoidable and impossible to reduce, the choiceWhilst the running costs of the property are unavoidable and impossible to reduce, the choice
in financial product is the key between a negative or positive cashflow.in financial product is the key between a negative or positive cashflow.
Lets look at the same scenario with an offshore multi currency loan:Lets look at the same scenario with an offshore multi currency loan:
Interest on loan - $8,750 (@ 2.25%)Interest on loan - $8,750 (@ 2.25%)
Council Rates -$900Council Rates -$900
Water Rates -$300Water Rates -$300
Owners Corp - $3,000Owners Corp - $3,000
Agent Management - $1,750Agent Management - $1,750
Agent Letting Fee - $500Agent Letting Fee - $500
Landlord Insurance - $300Landlord Insurance - $300
Vacancy Rate Allowance - $1,000Vacancy Rate Allowance - $1,000 (2 Weeks)(2 Weeks)
Total Cost:Total Cost: - $16,500- $16,500
Rental Income EstRental Income Est $25,000$25,000
Annual Income: $8,500Annual Income: $8,500 (Positive cash flow)(Positive cash flow)
As a property investor, we traditionally are prepared to top up an investment property annuallyAs a property investor, we traditionally are prepared to top up an investment property annually
with the shortfall in the cash flow whilst we enjoy the exceptional capital growth in our property.with the shortfall in the cash flow whilst we enjoy the exceptional capital growth in our property.
That being said, with the positive cash flow out come of an off-shore loan over a ten yearThat being said, with the positive cash flow out come of an off-shore loan over a ten year
period $80,000 ++ is a significant positive.period $80,000 ++ is a significant positive.
Positive Cash Income that can be used for leisure, living expenses, or re-investing into newPositive Cash Income that can be used for leisure, living expenses, or re-investing into new
property purchases.property purchases.
"We also have to consider that whilst we feel good on paper about the value of our"We also have to consider that whilst we feel good on paper about the value of our
property and the capital growth gain that could be in the hundreds of thousands, it isproperty and the capital growth gain that could be in the hundreds of thousands, it is
only on paper and not readily accessible as cash annually."only on paper and not readily accessible as cash annually."
The finance product is offered to clients of UCHK Consulting Ltd and subject to approval andThe finance product is offered to clients of UCHK Consulting Ltd and subject to approval and
the terms and conditions contained at:the terms and conditions contained at:
http://uchkconsulting.com/offshore-bank-loans-for-australia-real-estate-investors.phphttp://uchkconsulting.com/offshore-bank-loans-for-australia-real-estate-investors.php
- Loans below 500,000 > 2.25% > Indicative Rate- Loans below 500,000 > 2.25% > Indicative Rate
- For loans 500,000 + > 2.00% > Indicative Rate- For loans 500,000 + > 2.00% > Indicative Rate
- For loans 1,000,000 + > 1.75% Indicative Rate- For loans 1,000,000 + > 1.75% Indicative Rate