I wanted to put a scenario to you. Husband and I have been offered halves in a rural proprty with parents. This is great news. Property has two houses on it and large enough for both families….
Here is the dilemma:Parents: $250 equity in house that they can use ( will sell their house if we are successful in new purchase to release equity). But own their own small business so loans are hard to find as they cannot produce all financials…
Husband and I: Average ncome earners. 1 x IP (value $310000, loan $195000), have some cash.
New house: price $530,000 (120 day settlement [inlove]in which time parents will sell their house)
QUESTION: Can husban and I make use of parents $250 equity and use this as deposit for new property and then have remainin loan? Can loan be in our name? but the house in both our families name?Snowflake
It there is one title, then the laon will have to be in joint names – depending how you do it, all 4 or one from each family etc. All names on the title will have to go on the loan. Cannot have separate loans. Therefore the lenders will just treat it as one big loan – you will not need a seaparate deposit etc. They will assess you on the compbined incomes.
There are various tax issues to consider when buying a large property, so please check with your accountant on which way to structure it.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
thanks Terry
Is there any way that we can have the property and the loan in mine and husband name but use parents $250 equity as deposit???like a guarantor ? Even though their house is not sold yet?[inlove]
Snowflake
Hi Snowflake,
The loan for the new purchase could be in your name with the parents going guarantor. However, in terms of accessing the parents’ equity in their existing home, there is no way of doing this short of selling the property or taking out a loan against the equity (this loan would need your parents to be on it). I hope this is helpful. Best of luck.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044
http://www.perryfinance.com
You must be logged in to reply to this topic. If you don't have an account, you can register here.
