For any Chinese FIRB property purchasers in Australia, 2018 is definitely going to be a very special year. After two years’ policy instability in the FIRB lending industry, the market has finally seen some positive signs with more and more organisations and loan products coming to the rescue. Among them is Blue Lotus Loans, a mortgage product that is especially created for non-resident property purchasers in Australia.
Blue Lotus Loans is a consortium of KKR and Pepper, two top-notch international companies in the financial industry. With reputable big names behind the scene, competitive terms and condition of the product, and great customer service capacity, Blue Lotus loans have received huge number of inquiries from all related parties in the property industry; and have been very popular among FIRB purchasers who are looking to settle their properties soon.
To familiarize more customers with Blue Lotus Loans, today we have the privilege of inviting the Head of Operation of Blue Lotus Loans, Mr. Ryan Clarke, to talk about some of the most frequently asked questions about the current Australian Property Market and Blue Lotus Loans.
Ryan Clarke (Head of Operation, Blue Lotus Loans)
Mr. Clarke was originally from Australia and has spent the last six years living and working throughout Asia. Knowing what he does on a daily basis helps people achieve their financial dreams brings him a great deal of satisfaction at the end of each day. Mr. Clarke is in charge of the operation team of Blue Lotus Loans to ensure the product is running smoothly at all times.
What is your view about the current Australian property market?
In my opinion, 2018 is actually a great time to buy. After a temporary period of slower property growth throughout the first six months of the year, investors are able to find some great value in some of the quality developments being completed between now and the end of the year, especially in the major eastern cities such as Sydney, Melbourne and Brisbane.
Australia’s population has just reached the 25m milestone, and it took only 14 years to grow from 20m to 25m. Looking forward, the strong population growth is the ultimately the foundation of long term growth of the property market in this country, and we are lucky to see this trend going on in the foreseeable future.
What’s your insight for the market for the next 2-3 years?
Australian property will always be a safe investment, especially those high-quality developments in our capital cities. I expect the Australian property market will bounce back and again begin to deliver solid growth over the next 36 months.
For those who has purchased property in Australia but haven’t seen much growth, I would encourage these owners to be more patient as property is a long-term game.
What is the lending policy that FIRB buyers are facing?
Lending policies for non-Australian residents differ from lender to lender. Generally, Australian lenders do not accept loan applications that are based solely on foreign income, as it is difficult for local banks to verify the overseas income.
Before Blue Lotus was established, we saw most of the lenders who are still open to FIRB buyers reduce the maximum amount that non-Australian residents could borrow and heavily restrict their lending to borrowers with overseas self-employed income. Application processes for foreign investors also changed, many closely mirror standard Australian requirements, which can be a challenge for some due to the different financial and employment norms in other countries.
However, finance for FIRB buyers can be obtained quite easily with a minimum of hassle provided buyers know where to look! While Australian banks have ceased their non-resident lending programs, with a little bit of research smart investors are still able to source funding for their Australian purchases.
Why was Blue Lotus Loans created?
Blue Lotus Loans was created in response to the limited number of finance options available for non-resident purchasers of Australian property. We saw how difficult the few lenders operating in the space were making finance for purchasers and realised we’d be able to help by providing competitive and flexible solutions to an underserviced market.
What’s our difference with other loan provider on the market?
Blue Lotus Loans was established to provide a superior service experience to non-resident buyers. Unlike other lenders our entire business is focussed on foreign investors- in fact we do not lend to those who live in Australia! This has allowed us to tailor our products specifically to the Chinese market.
A dedicated team of underwriters working out of China means we are able to assess your financial position according to local standards and practices, which are very different to those in Australia. For example, while other lenders prefer PAYG borrowers from China, we take self-employed applicants as we understand the Chinese income structure and format. This allows us to really understand what our customers are after and provide the easiest path to finance possible.
Why should customers choose BLL?
We have customers choosing Blue Lotus Loans every day for a variety of reasons, depending on their situation. Self-employed customers make the choice due to our hassle-free income verification procedures- tax returns are not necessarily required.
Similarly, customers who lead very busy lifestyles often choose us due to our relatively light documentary requirements, and that they do not need to leave China at any point in the process. Documents are able to be signed in a number of our partner offices in major cities throughout China.
Others again choose Blue Lotus Loans for our fast-turnaround times, competitive rates, a particular product feature such as an offset facility, interest only repayment options, refinance function, high LVR ratio up to 70%, or simply because they have heard about us from family or friends.
Blue Lotus Loans is now actively in the market assisting FIRB purchasers to realise their Australian landlord dream. We have a strong dedicated team to support you during the whole process of getting finance. If you would like more information please give one of our Mandarin-speaking specialists a call on +852 3704 3470, or visit our website https://www.bluelotusloans.com/en
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