hello out there, i am in need of advise well it all starts like this imy wife and i are looking at buying a friends house of him to live in and rent out our unit we a currenlty living in to start of our portfolio.
now the tricky part is his house has been valued at 330,000 and has been offered to us for 290,000 but because we still have our unit we have only been offered 230,000 or if i dont put our 2 kids down on the application they will lend us 280,000, my parents have offered for us to live with them as they have a big house so we can save some more money for 6 months which we are taking the offer but i really dont think we will still get the full amount i have told my mate about my plans for real estate and he has offered for us to buy the house for 230.000 and pay him 60.000 later on all done leagl of course now do i go for the 280.000 and not put the kids down or do i take my mates offer but no matter what happens we will be trying to save the money first but i asking this in case i cant get the money up in time thanks for your help please ask any questions as how i have worded it sounds very confusing thanks againMMmm. Personally, I think lying to the banks is pretty dangerous. Your lender is using their own formula to work out how much they think you can afford to repay. Are you better at working out what you can afford to repay than they are? There are lots of ways to get more money than the bank wants to give you, but when the bank starts saying NO, that really should raise some warning flags for you. Are you trying to get in to more debt than you can really afford. Who valued this house at $330K – a RE agent or a valuer. A RE agent opinion isn't worth anything in your situation. Only pay attention to the opinion of a valuer. Even they can be wrong, but at least they tend to be conservative, rather than over valuing the property.
Sometimes, when the world makes a plan too hard, it is trying to tell you something. Reasses your plan, your options and your affordability. Perhaps you should just pay a bit more off your mortgage, or sell your unit and buy this house. Your mate's offer might be attractive, but what's the point if you bury yourselves into more debt than you can comfortable afford. Rethink.
Si understand what you are saying but paying it is not a problem as we are paying x 3 payments a fortnight of our current mortgage and i wouldnt be lieing to the banks about it as it was a bank home loan legender manager who put the idea to me as that is what he has done for our current loan so i wont be lieing to anyone about it.
if i read this correctly you are paying 3 mortgage payments a fortnight? how long have you kept that up for as you would have built up quite a lot of equity in your unit if its been more than 12 months. i think that you should approach/evaluate another broker and get their opinion on your finance side of things. if you have a reasonable amount of equity you could refinance, buy your mates place and rent them both out while you live with your parents for 12 months or so, to build up some more equity to duplicate your plans.
good luck and i hope it works out for you guys
kev
I think if any bank manager has suggested that to you i would ringing his Head Office as what he is suggesting is actually fraud and it is you who will spend time at Her Majesty's Pleasure and not him.
Each lender has its own way of assessing serviceability and it may just be a matter of getting your mortgage broker to look at other options.
Deceiving a lender on a mortgage application is not the suggested route to follow for the long term.
Richard Taylor | Australia's leading private lender
kev
I think if any bank manager has suggested that to you i would ringing his Head Office as what he is suggesting is actually fraud and it is you who will spend time at Her Majesty's Pleasure and not him.
Each lender has its own way of assessing serviceability and it may just be a matter of getting your mortgage broker to look at other options.
Deceiving a lender on a mortgage application is not the suggested route to follow for the long term.
Richard Taylor | Australia's leading private lender
first you say you can only borrow x amount because of your existing debt obligations…
then you say you want to try save up the money you need?So is it your serviceability that is constraining your borrowing power? or is it the deposit? or both?
Sounds like its the serviceability.
Has your lender/brokers calculations included the potential rental income from your old unit?
You could do some research on rents in the area, find out if the average rent would add enough borrowing power.
then you can move to mums, get it rented out, get the rental income counted in your borrowing power.if it is deposit constraining you well then its a different story.
moving back to mums and renting out for a bit will allow you to save more.
If you have contributed more to your existing home loan you could redraw the extra back and use it in the deposit if you dont need it bringing down your debt and increasing your servicability….theres also the equity path, you could try and draw cash back of the equity in your unit to boost the deposit.
Or you could directly use the equity in the old property to secure the new loan (i wouldnt want to do this though).also who is this person you are seeing? which institutions do they broker you with?
you could try aussie, wizard, st george etc etc any of the non bank lenders, often they will lend more than a bank will.Yeah I wouldnt really trust any broker/agent who is overly interested in bending and breaking rules.
Aside from the _obvious_ point of doing important life level financial business with an untrustworthy person……
They may saddle you up with more debt than you can actually handle just to secure thier own commision.
Its your purchase, so its your hide if it all goes sour.Varsky
Not telling the truth = asking for deep trouble in the future.
Think about future… as investment is a long term processYes you don't want to borrow more than you can realistically afford. You will need a buffer for any emergencies in the future plus if rates go up again you will just stress out trying to pay back the bank. You will end up a Debt Slave and it is not nice when you can't go to sleep worrying about how you are going to pay the bank next month.
You know the funny thing is all exept 1 or 2 people concentrated on lieing to the back i gave 3 options and the only ones that got a reply was the lieing to the bank, i havnt put a post on here for a long time due to everyone being so negative the whole point of it is to help each other what i wrote there is no possible way you could put an answer to any of it without going into more depth with me about it and asking questions instead of being so negative i am very dissapointed in this post due to the lack of info and no questions being asked just everyone saying about lieing to the banks and you know what i bet steve would be dissapointed aswell, as in all his books he states how this is here to help one and other but how wrong can one be thinking this site was to incoarrage one and other read the post again if you dont believe me the are 3 options and everyone only consentrated on one so if you ask me there is no encoragement at all as i have done all the maths spoken to the banks and know it can be done the right way after you have read the post ask yourself can that really be answered without going into more depth because no it cant be answered or have advise given without doing it you all just saw 1 part that mentioned lieing to the bank now even i'm not that stupid but very surprized that thats the only one that i could get help with but i must say im not shocked.
kev2008 wrote:hello out there, i am in need of advise well it all starts like this imy wife and i are looking at buying a friends house of him to live in and rent out our unit we a currenlty living in to start of our portfolio.
now the tricky part is his house has been valued at 330,000 and has been offered to us for 290,000 but because we still have our unit we have only been offered 230,000 or if i dont put our 2 kids down on the application they will lend us 280,000, my parents have offered for us to live with them as they have a big house so we can save some more money for 6 months which we are taking the offer but i really dont think we will still get the full amount i have told my mate about my plans for real estate and he has offered for us to buy the house for 230.000 and pay him 60.000 later on all done leagl of course now do i go for the 280.000 and not put the kids down or do i take my mates offer but no matter what happens we will be trying to save the money first but i asking this in case i cant get the money up in time thanks for your help please ask any questions as how i have worded it sounds very confusing thanks againKev,
A constructive suggestion that may elicit some more helpful responses would be to write your request with a bit more punctuation to your sentences.
It sounds as if there are multiple issues here and if you took the time to explain yourself more clearly or at least you gave us a little bit more white space to work with I am sure you will get the sorts of responses that you are after.
Consider the following:
hello out there,
I am in need of advice well it all starts like this:
My wife and i are looking at buying a friends house off him to live in. We will rent out the unit we are currently living in to start off our portfolio. We are hoping to achieve a rent of $___ for our unit.
The tricky part is his house has been valued at 330,000 and has been offered to us for 290,000
Because we still have our unit (and a debt of $x) we can only borrow $230,000, it impacts on our borrowing power. We currently owe $___ and our unit is worth $___
The person at the bank told me that if i dont put our 2 kids down on the application they will lend us 280,000, but I don't feel comfortable about lying on my application. I am considering reporting him because it was those shady lending practices to begin with that caused this whole financial crisis.
My parents have offered for us to live with them as they have a big house. This will enable us to save some more money for 6 months – we are taking the offer but i really dont think we will still get the full amount (why?)
I have told my mate about my plans for real estate and he has offered for us to buy the house for 230.000 and pay him 60.000 later on all done legally of course.
Here are the options as I see it:Option 1
Do I apply for the 280.000 and not put the kids down (although this feels like I am lying on my application, because I really do have 2 kids, so this is not really an option)Option 2
Do I take my mates offer (ie, to give him $230,000 and give him the $60,000 later)?Option 3
Are there any options that I have yet to consider?No matter what happens we will be trying to save the money first but I'm asking this in case my circumstances change and I am unable to raise the remaining $60,000 in time.
Thanks for taking the time to read my post. Please ask any questions as I can understand that the lack of punctuation in my previous post rendered it very confusing.
Thanks again
Kevin2008.
An English teacher I used to be…
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