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baybee
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@baybee
Join Date: 2011
Post Count: 7
February 1, 2011 - 1:03 pm
Thanks Anthony. I have done this and have discussed with my lawyer. He is happy with what I have done so far. He will draft the contracts so that we have everything spelt out so that unforeseen circumstances such as the ones you have called out, will be captured adequately. We will be working through a tenants in common contract. And the bank has confirmed that this set up is fine for future borrowings. Thanks again for your advice.
baybee
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@baybee
Join Date: 2011
Post Count: 7
January 26, 2011 - 6:10 am
Oh ok… let me clarify.
They signed the contract and added the "and/or nominee" to the purchaser details so there are no problems to adding my name at settlement.
baybee
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@baybee
Join Date: 2011
Post Count: 7
January 2, 2011 - 10:18 am
Thanks Richard.
I guess, the point I am trying to make is that the home loan manager didn't bother to ask for any evidence from my parents. She just basically said that the bank will not lend them any money because they cannot service the loan. It was a 10 minute conversation – she just wasn't interested to find out more. They weren't even customers of the bank so she couldn't really make a deduction about their financial ability to service the loan based on savings accounts etc held at the bank. I just think that is really poor service and a strong cause for complaint – but that is another story altogether.
Anyway, I have just been told that they have managed to find 2 banks (Westpac and NAB – they didn't go to ANZ) that are willing to lend them the money based on their financial statements and they won't need a bridging loan after all. They may keep the property in SA and rent it out in the short term as the rental returns are very good. Of course, they will have to consider other tax implications such as CGT etc later on. This, I will leave to their accountant!
Thanks so much for helping me out in this forum.
baybee
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@baybee
Join Date: 2011
Post Count: 7
January 2, 2011 - 4:58 am
Hi Jamie,
That's how my parents felt – they were discriminated because of their age.
They were not asked if they were working etc… the home loan manager at the Ashburton commbank branch just took a look at them, asked them their age and said that they are not eligible for a loan because they won't be able to service a 30 year loan at their age! My mum and dad has an investment property that they were intending to sell at a later date to clear out all their debts when they finally retire.
My parents are both still working – mum intends to work till she is early 70 – she is still fit and able and most importantly, she enjoys working! She is currently working full time and earning 60K+ per year in SA. Here in Melbourne, in an equivalent role she will be expecting the same amount or up to 100% more if she chooses to contract. She already has a few interviews planned late this month. Dad is on casual wages – he's semi-retired, at $50 dollars per hour – approx 20 hours per week. He intends to continue this casual working lifestyle when he comes to Melbourne. They both have super which they will not acess to service the loan. They also have an IP which is currently approx 400K.
So I think that they could comfortably service the $500K loan based on this. They have no other debts.
baybee
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@baybee
Join Date: 2011
Post Count: 7
January 1, 2011 - 12:47 pm
Thanks Jamie for the warm welcome
It was commbank who said that they are too old to service any loan. Mum and dad were obviously rapt with the commbank customer service training! So much for their Determined ads… Definitely NOT determined to give the oldies a chance.
They haven't gone to any other bank to speak about the potential of getting an investment loan but will plan to discuss with the other banks next week.