Please help.
I have secured a property for a price that 10% less than current market value.
My cash flow is low, I only have 5% plus satmp duty.
I am having difficulty in borrowing 95% due to my high commitment (fail the serviceability test, try ANZ, BankWest & NAB).
How about taking an investor on board, one who will lend you enough money to get you down to an LVR you can borrow at (ie 80%).
You can then either work out a profit sharing arrangement with the investor, or pay them a straight % return on their funds.
Is the vendor willing to carry some of the debt back as a second mortgage. Offer them above market rates to provide an incentive and see what happens.You never know till you ask.
Have you got a good Mortgage broker onto the case. They often can see solutions we can’t.
Enjoy
AD [:0)]
“Enjoy life. There’s plenty of time to be dead.”
-Anon.
David O’Brien is a broker who mite b able 2 help – but u would probably be looking at a non-conforming loan and the rates would be steep. If u want to contact him, his email is [email protected]. Good luck[]
1) If you are confident that the market is rising, go for a long settlement (at least 6 months) and hope that the market rises enough for you to get in at new valuation (hopefully closer to the magic 80%)
2) sign it up and on sell to another invstor, again requiring longer settlement
3) variation on 2) is to sign up with a long cooling off clause and then try to find some else to assign it to
4) get a long settlement and work in your J.o.b. to raise sufficient funds to lower the LVR required.
5) If the deal is looking good numbers wise, offer some friends a piece of the pie either based on a fixed % return on their investment or as equity partners (now there are a lot of issues in this baby, believe me [])