One-stop shop for loans to invest in property oversees
Hong Kong and mainland investors are turning in growing numbers to investing in property markets around the world, leading to a rise in demand for one-stop property financing services with options for loan repayment in multiple currencies, according to National Australia Bank.
To capture a larger slice of the offshore financing demand, NAB says it is offering to individually tailor loans for each property finance applicant based on an assessment of individual financial circumstances.
The service will take into consideration multiple sources of funds as well as foreign exchange control policies, particularly important in the case of clients from mainland China, said Grace Mak, private client executive director for NAB Private Wealth.
NAB offers international property financing for purchasing or refinancing of properties in Hong Kong, Australia, New Zealand and Britain.
Since the Hong Kong government imposed a buyer's stamp duty and special stamp duty in October last year to cool Hong Kong's property market, a growing number of the bank's clients had begun looking for opportunities in overseas property markets, Mak said. Completed transactions and mortgage loans were on the rise.
"Most of our clients are local residents or expatriates living in Hong Kong. A small number of them are mainland Chinese, and most are capital-rich," she said.
Minimum investments being made in Australian and British properties averaged around A$500,000 (HK$3.58 million) and £350,000 (HK$4.18 million); and buyers favoured loans of shorter length, opting for full loan and interest pay-down in 10 years or less despite a maximum ceiling of 25 years for properties in these countries. Another preferred feature is quarterly repayments instead of monthly repayments.
"All of our property financing clients who are purchasing overseas properties are doing so for investment purposes," Mak said.