Hello The question is I am buying an investment property with a friend The property is $145000
We could take out a low doc loan at 80% We could draw down $14500 each from our properties plus legals Is this a good way? We Settle in December
They have asked for a $10000 deposit
When would we draw down the equity Close to settlement
Roslyn[
]Surely, Before the settlement!
[
]Hi Roslyn
I just did much the same thing with my bro inlaw.
We went halves in a retirement unit in Carrum Downs.We both have our own property portfolios but did this one together for reasons we now both can’t remember.Any way we set up loans for half the purchase price each (which in my case was a top up of my rocket investment account with BOM)
We both drew down our share of the deposit and from then on you are required to pay interest only on that amount until you draw down the balance at settlement.
Something to consider if this is your first IP is that the title will be in two names and that means you would have difficulty using it as security for your next loan.
There are ways around this so talk to your accountant.
bye,
Joff
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