Expat buying a Sydney investment property through a company

The situation

This is an anonymised composite reflecting a recurring pattern, not a specific settled transaction. An Australian citizen living and working overseas for several years wants to acquire a small commercial investment property in Sydney, structuring the purchase through a newly established Australian company rather than in their personal name, for reasons their adviser has recommended.

Why it's hard

Many bank lenders apply more conservative policy to borrowers earning income overseas, particularly where that income is in a foreign currency or from a jurisdiction the lender is less familiar assessing, and a newly established company purchasing entity adds a further layer most standard bank policy does not comfortably accommodate. Serviceability, foreign income verification and the entity structure all need to line up for a lender to say yes.

How it can be structured

A commercial property loan through a lender experienced with expat and foreign-income borrowers is the standard path, assessing overseas income with an appropriate haircut for currency and verification risk, secured by the property and supported by director guarantees from the expat individually; the exit is ordinary loan servicing from rental income and the borrower's overseas earnings. Where mainstream bank policy proves too restrictive, private lenders and non-bank lenders active in this space assess the file more directly on the individual's actual financial position and the property's quality, generally at a modestly higher rate than a straightforward domestic-income borrower would receive. As an Australian citizen rather than a foreign person, this borrower does not require FIRB approval, though the company structure and its constitution should be confirmed with a lawyer before purchase contracts are signed.⚠

Because the purchasing entity is a newly established company with no trading history of its own, lenders will look through to the expat director's personal financial position and overseas income as the substantive basis for approval, with the company treated as a holding structure rather than an independent applicant in its own right. Foreign currency income is typically converted at a conservative exchange rate buffer for serviceability purposes, protecting both borrower and lender against adverse currency movements over the loan's term, and expats should expect this buffer to reduce the borrowing capacity a straight currency conversion might otherwise suggest. Where the expat has an existing Australian property or lending relationship from before relocating overseas, this history is generally viewed favourably, demonstrating a track record the lender can rely on alongside the newer overseas income evidence. Company constitutions and shareholder structures should be reviewed by an Australian lawyer before purchase contracts are signed, since a structure suited to tax planning may need specific provisions to satisfy a lender's standard security and guarantee requirements.

What it typically costs

Pricing reflects the additional assessment involved in verifying overseas income and the company structure, generally somewhat above a standard domestic-income commercial loan, quoted on enquiry once a lender has reviewed the borrower's income and the property. Costs otherwise follow standard commercial property lending norms.

Timeline

1. Same day — scoping call confirming income, location, the company structure and the target property.
2. 5–10 business days — document collection, including overseas income verification and company establishment.
3. 10–15 business days — lender matching and credit approval.
4. 5–10 business days — settlement.

Questions we'd ask you

1. What is your current country of residence, and in what currency is your income earned?
2. Is the purchasing company already established, and who are its directors and shareholders?
3. What deposit are you contributing, and where are those funds currently held?
4. Have you engaged an Australian accountant or lawyer to confirm the company structure suits your circumstances?
5. Do you have an existing Australian banking or lending relationship from before you moved overseas?

Related

Foreign investor loans · Commercial property loans · Australian expats · Offices in Sydney