I am working in a tax free country as an Aussie Expat.
Buying a house back in Perth seems to still be in the too hard basket.
What is the best method to get into the market from outside the country as a non-tax paying Australian citizen?

Hi there WB,

Will need a little more detail here - such as work occupation, country where you are working, evidence of income and how long you have been with your employer but in essence if all of these stack up, being an Ausssie Citizen working overseas you CAN still do something. We are limited with the lenders to use these days but we certainly have options that are competitive for you.

Basically what will happen is that the banks will convert your income to AUD. We then apply this as your gross income (and Aussie tax taken out) we can then use 70-80% of your NET income depending on the lender and country you are working.

I am currently doing two now - one as a refinance and one as a purchase. Some lenders my need for you to have a Power of Attorney, and you will need to have ID signed and certified by a government consulate. So a few extra steps to take, but certainly doable.

The steps to take would be to get all your ducks in a row first:
1. Determine your borrowing capacity
2. Get all your documents including ID all certified
3. Obtain Pre-approval
4. Start your property search

Let me know if I can be of assistance, always happy to help,
Nicole Cannon :)
Pink Finance

Yes it is still possible, albeit limited options and as Nicole covered off income will be converted to 80% of nett to be used to determine borrowing capacity, as well as all other debts you may have will need to considered.

In regards to determining borrowing capacity you would be well served by an experienced broker who works in this space. I have one awaiting approval with a big 4 lender and client is Aussie Citizen paid in AUD via a company in the Philippines he is employed by, whilst living in Thailand.

Happy to do a preliminary assessment at no cost to you to see what your options are.

Cheers.

Hi WB

There was an article on this very topic in one of the mortgage industry publications today that you may find interesting:
http://www.mpamagazine.com.au/sections/market-talk/foreign-income-lending-rules-stopping-aussies-not-just-foreigners-236320.aspx

Your situation is certainly more difficult given the regulatory changes over the past couple of years, however, as Nicole states there are still a few lenders who will consider lending to those with overseas income.

Amy