Forum Replies Created
So whenever I apply for a new loan in the future the lenders will assess me for 100% of the debt on the property I own jointly but only take into consideration 50% of the rent? Is there any way around this?
What is the best way to own/buy property jointly? Is there a way of structuring it so it is possible to own property jointly without negatively impacting on the borrowing capacity of each co-owner in the future? Can some kind of legal structure be set up (trust or company) that be more suitable?
Thanks Terry. So can my friend and I approach the current lender and release some equity, say $60k, then I can approach another lender and simply use my portion of that $60k as a deposit for the next property? That way my friend and I would only be jointly liable for the 60k equity release and would not have any interest in any subsequent purchases we make individually. Is that how it works?
Ok thanks Not the best news…
Last year we noticed an opportunity to purchase a property below market value but neither of us had enough deposit at the time so decided to buy it jointly.
So if I want to use 20k equity from the house I own jointly with my friend to buy a $200,000 property on my own are you saying my friend will be liable for only for that 20k or for the entire amount of my new loan for the 200k property? Just trying to get my head around the implications of joint ownership.
Cheers
Rex
Hey Colin,
I’m considering the same thing. So do you believe that if my plan was to buy and hold for at least 10 years and I have the option of two apartments or 1 house, (both apartments are slightly positive cash flow and the house is slightly negative), I am likely see better gains from the house long-term than I would from two apartments (all in the same area).
Cheers
