You may be able to borrow up to 95% of the purchase price, depending on the location and cost. Having a higher rent would help you qualify as well.

Terryw
Discover Home Loans
Mortgage Broker
[email protected]

Not much you can do. If they don’t settle soon, they will lose thier deposit and could possibly be sued. They could onsell to you, and have a simultaneous settlement, but you would have to pay stamp duty as well. There would be no way (legal) to avoid stamp duty, unless maybe the vendor rippued up their contract and you/someone signed a new one. But they would probably only do this if the property had dropped in value.

If it has increased in value substantially, you could lend them purchaser the money to settle or to qualify for a loan and then onsell with a profit sharing. But a lot of these places are not being valued up to purchase price.

Terryw
Discover Home Loans
Mortgage Broker
[email protected]

I would suggest, you form a trust, with yourself as sole trustee or sole director of the trustee company. Get the loan in your name with a formal loan agreement drawn up, with you friend lending money to the trust for deposits. Also have a joint venture agreement drawn up outlining profit sharing, risk sharing etc. Then you can distribute profits to the beneficiaries – you and him/her, maybe as trustees of your own trusts.

But this way you will be taking all the risk, – whihc may be mitigated by your other agreements. eg he/she will compensate you if anything goes wrong and you ‘go down’. And this will affect your borrowing capacity, but not his/hers. Which could be good because you can then later form another trust in his/her name and go again.

Or

You could simply borrow money from your friend and do it on your own.

Terryw
Discover Home Loans
Mortgage Broker
[email protected]

1. If your main residence is rented out, after you first live in it, and sell it wihtin 6 years of renting it, and have no other main residence, then it may be CGT free. There is no requirement to live in it for 12 months first.

2. You can claim building allowance on any improvements and depreciaiton on any fixtures for a property you rent out.

3. Not in Australia.

Terryw
Discover Home Loans
Mortgage Broker
[email protected]

Felicity

That is a good idea. That way you could encourage them to refinance rather than drag it on.

BTW, what do you prefer? The long term cashflow or the quick exit approach?

Terryw
Discover Home Loans
Mortgage Broker
[email protected]

Some also charge a settlement fee and lenders legal costs.

Terryw
Discover Home Loans
Mortgage Broker
[email protected]

Hi

Could your husband’s employer put him on full time for a few while the loan is being applied for?

There is one lender out there that will do a 90% low doc/full doc for self employed with only 12 months history. The rates are high though, but you could possibliy get (after waiting a few months) in and then refinance to another lender in 12 months time at a lower rate.

Terryw
Discover Home Loans
Mortgage Broker
[email protected]

I have done a few loans for hybrid trusts.

Terryw
Discover Home Loans
Mortgage Broker
[email protected]

Hi Michael

I think you have to take any losses off the gains before halving and then adding to other income.

I also tend to agree with Yack, Manly is a very good area with good long term growth prospects. I would not sell just to buy another property.

Terryw
Discover Home Loans
Mortgage Broker
[email protected]

It is hard to get development finance with major banks. A lot want to see a certain percentage of the units presold before they give finance. They will also look at previous record etc.

There are some small private type lenders out there. I have onbtained fiance for a few clients using these. The LVRs will depend on location and size etc, but generally about 65% of the end value will be possible. This should be nearly 100% of your costs.Rates are 10-12% apporx.

Once the project is complete, you can then refinance with a major lender at a lower interest rate

Terryw
Discover Home Loans
North Sydney
[email protected]