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I forgot to mention that the name and real estate agency used in the above story is not real.
C’mon guys there must be someone out there who can tell me if I have the right to put down a $1 deposit
Foundation
I didn’t say anything about renting it for $35k. on paper we would rent it so that we can pay interest only. The reason why we can’t go else where is because the family member who is lending us their equity is with Member sequity and doesn’t want to move from there as she has been with them for a long time and is on an interest rate of 6.55% so out of respect for her and appreciation for lending us her equity we need to stay with members equity.
There must be a way we can make it an interset only loan. Can anyone help?
I have asked them for an interset only loan but won’t do that on a PPOR.
The background is that we are using family equity for the deal.
What If i said that we were to move into the mother in laws house and rent it out. would that make a difference. The purchase price is $485k and I have caluated $15k for expenses so all up $500k loan.
Any thoughts
If interest rates were on the rise wouldn’t banks be increasing their fixed rates?
To add more detail to my topic I’m looking at buying at Nudgee Beach
I use Mobile Convenyacing services. They are based at Stoners Corner
Hi Clay
In response to your question” what happened to the mother in law deal” We had a good think about it and besides recieving equity straight away, we would be paying a mortgage on a house that would never be ours as we agreed to let the mother in law keep the profits if the property was sold.
Be wary of financial advisors as they recieve a commission on what they sell to you. They don’t recieve commission on giving you proerty advice.
I used one when I was younger and found that all they plugged was shares. She don’t me that I was wasting my time investing in property.
Clay
thanks for your reply. It’s great to hear that your Ipswich properties are performing well. Do you see there being a rate increase in the near future at Ipswich or has there already been one?
You amy have to drop the rent by $10 to attract potential tenants. $10 less a week is better than having to service your mortgage all by yourself
Hi Clay
I have found that Bertie realestate is quite good as they only charge 5% and are quite professional.
Hi not a broker
When is the best time to call you?
Hi Clay
How are your Ipswich properties performing? i am looking at investing in Ipwsich because of all the new development going on in Ipswich. Which are the good pockets of Ipswich?
I too am looking for a mentor. I have had a mentor whilst in business and found they were a great help.
I am based in Brisbane and would really appreciate anyone who practises what they preach. Someone I can bounce ideas of and vice versa.
Please let me know if you can help.
Robert
The mother in law owes $250k and the property at worst is worth $350k. I am an investor who sold all 4 properies I had about a year ago and ready to get back into the market. I am trying to avoid a 106% loan if I can. Your suggestion on using the equity and pay her mortage, does that mean that the property will still be under her name? and is it really worth paying half the mortagage (she pays the other half) when at the end of the day it won’t be our property?
do you see Brisbane prices decreasing and Ipswich prices on the rise. If that is the case I may be better holding off on buying in Brisbane
Terry that is exactaly what I thought. I am currently looking at units in Nundah and houses in Ipswich. I know that land is the key to growth but what about the fact that more people are opting for unit living because of security and no garden maintence. Which would be the better option keeping in mind that I want to get out of the 106% loan asap?
Hi Terry
The idea of this exercise is for us to get a foot back into the market without having to go through a 106% loan at an interest rate of 8.55% and for the mother in law to be debt free. My only concern about this excerise is that we will be paying half the mortgage repayment but won’t recieve any profits if she decides to sell. Am I better off to start on a 8.55% loan, build equity then switch to a standard loan or stick with buying the mother in laws house?
I’m not looking for a quick buck as I don’t believe in get rich quick schemes put what I am trying to do is to put myself in the best postion where I can go back to a normal loan and stop pay 8.55% on a mortagage. Also my mother inlaw is looking to sell her house to us for $100k undervalue so that we can use the equity to get into a normal loan and she becomes debt free. what do you think of this method
Quick question Am I better off buying a unit in Nundah or a house in Ipswich?
