Deceased estate

Viewing 4 posts - 1 through 4 (of 4 total)

casey
Participant
@casey
Join Date: 2002
Post Count: 34
February 5, 2004 - 5:37 am
Would appreciate any opinions on the following.
My husbands brother has died recently and left his house etc to his 6 siblings. He never married. His estate is being managed by the State trustees
The house can be either
Sold by auction and money shared between siblings or
My husband can buy siblings out
The family has already said they do not want to keep the house so his options are only those listed.
It is in Melb and worth about $300,000. It would need a cosmetic makeover new paint etc which we could easily do.
If my husband wants to buy them out we wouldnt get a loan just yet as we have just bought another investment house and cant borrow any more.
Any suggestions on how we could raise the capital or get in a JV with someone who has the money?
elves
Member
@elves
Join Date: 2003
Post Count: 507
February 5, 2004 - 5:47 am
I cant really say much with the public trustee involved, maybe you could talk to them?
Given you are already a confirmed owner with a share of the property, you therefore would have some equity.
Assuming there are 6 this would be 6/300 50k each.
so you technically already have the deposit. You say you cant borrow anymore, but maybe if the bank knew the house was being rented out? and you already have equity in the place at more than 10% market value…and there is additional income
Get some valuations to be sure.
are you positive they want the money?
you may have time to decide, but I guess for you the sooner the better, or the siblings might want more…lol
Hard to say, I hate fights over deceased estates.
elves
bluecat
Participant
@bluecat
Join Date: 2004
Post Count: 106
February 5, 2004 - 5:50 am
I’ve also heard a case where the siblings wouldn’t let one of the others buy it because they would have nothing of the capital growth so the person had to sell – things to do with money can be so hard to satisfy everyone
not helping your question but just some info
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cheers,
bluecat
Do today what you want to do tomorrow
Melanie
Member
@melanie
Join Date: 2003
Post Count: 382
February 5, 2004 - 6:46 am
Hi,
I think Elves is on the right track – you have 16% equity in the property already and if the rental income can cover the debt on the remaining $250K then you can probably do it.
First thing I’d do is go to local real estate agents and ask them what kind of rent you could expect to receive pre & post a cosmetic makeover, and then get a broker to shop around for a lender who’d look favourably on your servicing – eg Macquarie who’ll take 80% of the rent on the property you are offering as security and 100% of any other rental income received towards servicing.
Ultimately you have to be happy that you’d be able to manage the new debt level too and cope with any unexpected circumstances. Note you could possibly increase the loan amount to 90% of the house’s value, covering costs and maybe even putting some protection cash back in your wallet to cover reno’s and vacancy periods too.
Good luck with it all during a sad time.
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Mel
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