Unfortunately two years ago I was forced into bankruptcy due to divorce and other poor money management issues. I did attempt to resolve the problem before electing the easy way out. I find it funny how people call it the easy way out, becasue there isn’t anything easy about it. Any way I am getting off track, what I would like to know is how do I go about starting this whole process. I am in a different position to most because 90% of financial instutions wont lend me money and the ones that will require over 20% deposit and at times that can be a considerable amount on money. I am motivated and I will be a millionaire, I just need a helping hand to get me started in the right direction.
Hi slaurie44
Welcome to the forum.
Sorry to hear about your situation, divorce is the greatest wealth destroyer, but it doesn’t have to be the end… and you seem to understand that part already. Just don’t let your hurdles stop you now!
You are entering the market at the top of a huge property boom over the last few years so you are a little late for that, but there is another coming and youneed to be ready for it. During the time that you are bankrupt you can work towards getting into a position that the banks will listen to you. Start a savings plan, ensure you are debt free ( as you don’t need to clear all debts when going bankrupt) start learning about RE and investing.
You can also consider other types of finance such as vendor finance, personal financiers, and joint ventures.
Make it possible in your reality and you will be able to see the way to get going.
Cheers
Leigh K[
]Carve your own path and lead the way.
Hi slaurie, are you still a bankrupt, or are you now a discharged bankrupt?
If you haven’t got a 20% deposit to put in, you might have to find somebody who will be your ‘financial’ partner. ie, you find the deals, have the 10% or whatever deposit, and the loan goes in their name. There are several ways to structure this, but I would certainly recommend getting legal and accounting advice.
Also, as leigh says, if you are looking for your own home, then perhaps a Wrap might be suitable for you. Although don’t expect to build the equity really quickly.
Good luck. My Uncle is in the same situation, but managed to secure a unit valued at $100K. He only had $15K, so I lent him the other $5K, and luckily for him that place is now worth $160K, so he refinanced and bought another place. He was offered 10.6% interest by bluestone (before the recent rises), and after talking to my bank manager at St George, he ended up with 6.5%. So there are loans out there for you.
Cheers
MelAll is not lost how much are you bankrupt for and for how long and can you prove it was not your fault.[8D]
I WAS IN DEBIT OF $35000 AND MY BANKKRUPTCY WAS DISCHARGED 6MONTHS AFTER DECLARING IT. SO EFFECTIVELY I AM NO LONGER BANKRUPT, IT JUST REMAINS ON MY CREDIT HISTORY FOR 7 YEARS.
As a discharged bankrupt, you could borrow up to 85%.
Leigh gave very sound advice – it is critical that you start regular saving. Cut your spending, move if you have to, to cheaper shared accomodation, get rid of the car and use public transport – whatever it takes!
And keep out of debt!
If you can prove to yourself that you have the discipline to save money, then you should be able to get a loan.
Mel mentioned the case of his uncle of his uncle – give some hard thought to buying at the very bottom of the chain, such as a $100k unit.
Although you may have to pay higher interest rates to begin with, it will help heaps towards re-establishing your credit. 5 years might seem like an eternity now, but in 5 years you’ll look back and think “Thank God I got going, and bit the bullet”.
Whilst I too wish you good luck, it takes determination and plain hard sweat to get past adversity, and prosper. And that’s up to you.
Max Hugen [email protected]
Alpha Financial
Residential & Commercial Loans
http://www.alphafinancial.com.au
02 9560 3061
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