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  • Profile photo of paulinek64paulinek64
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    @paulinek64
    Join Date: 2012
    Post Count: 7
    September 6, 2016 - 10:29 pm

    We cannot use a reverse mortgage as we need $500,000 up front to pay for serviced apartment and reverse mortgages limit the amount borrowed, the most l have seen is 350,000 , so not enough. Also the trigger to pay back full amount occurs when the owner moves out of the home, in our case this is happening immediately. A reverse mortgage helps the owner to stay in the home, in our case our owner wants to move out of home at the beginning of the loan.

    • This reply was modified 8 years, 2 months ago by Profile photo of paulinek64 paulinek64.
    Profile photo of paulinek64paulinek64
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    @paulinek64
    Join Date: 2012
    Post Count: 7
    September 5, 2016 - 10:00 pm

    ok this is a brief rundown of my situation.
    My mother in law is moving into a retirement village and needs $500,000 up front to pay for it. Her PPR is a developement corner block in Templestowe Lower . It is in high demand both for buyers and for rentals. Naturally we dont want to sell and wish to develop the block ourselves. We are after a line of credit to finance her into retirement apartment and to fund her lifestyle once her funds in bank run out.
    We are wanting to take out a line of credit with her, my brother in law and myself and my husband as co signees. We all have a good credit history and there is no mortgage on the house. The value of house is 1.1 million. House will be rented to pay interest on loan. If we put this house on the market it would be sold in 1 day. There are always call from local agents to my mother in law , trying to get her to sell.
    But the banks dont seem to want to play with us. Broker says it is a unusal scenario, only bank that says maybe is CBA.
    If we cant source loan from mainstream banks we will look at private lending. Does anyone have experience with private lenders. I know interest rate will be higher but l am committed to finding a solution to this, l do not want developers to profit from this land, it needs to stay in the family.
    A reverse mortgage is not applicable as the trigger to repay this type of mortgage is leaving the property ( usually a death ).
    Any advice would be appreciated

    • This reply was modified 8 years, 2 months ago by Profile photo of paulinek64 paulinek64.
    Profile photo of paulinek64paulinek64
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    @paulinek64
    Join Date: 2012
    Post Count: 7
    September 5, 2016 - 4:13 pm

    Thanks for your reply Corey. The last thing l would want is to waste a brokers time. Its just that in the past l have read of an investor doing this. I am desperate to get this deal across the line. its an unusual situation so hence the banks reluctance to fund. I would also not want multiple hits on my credit history. I though a broker probably has a good idea if its worth putting an application in without formally doing so and risking multiple credit hits. My broker says CBA maybe,but thats the only bank who has said maybe. At this stage we havent put a formal application in. Its not a bad credit rating, or equity issue, just unusual scenario.
    Appreciate your answer
    Pauline

    Profile photo of paulinek64paulinek64
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    @paulinek64
    Join Date: 2012
    Post Count: 7
    August 22, 2012 - 12:58 pm

    If l had to choose l would go for Toowoomba. Just make sure you do lots of research , because if you need to make 50-60k in equity in three years you will have to buy well. I spent 186,000 in orange on a three bedroom house in Glenroi , Orange. It rents for 280 a week. However this will never increase in value by the amount that you need. You may have to manufacture equity by doing a cosmetic reno, so maybe buy a place that is structurally sound but needs a freshen up, close to the CBD of these areas that you r interested in. It helps if you live close for this strategy to work. If you dont live close to Orange, Bathurst or toowoomba, maybe look closer to home.

    Profile photo of paulinek64paulinek64
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    @paulinek64
    Join Date: 2012
    Post Count: 7
    August 22, 2012 - 1:17 am

    Hi l have bought in orange.when you go there you get the feel that it is a vibrant economy.it is easy to find a cash flow property.However at the moment the rental market is flooded.If l was you l would look at Bathurst or towoomba as both are hubs which benefit from mining but are not reliant on it .Margaret Lomas gives both a big plug

    Good luck

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