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Guys, I haven’t recieved a great deal of help on this one so I’m going to ask this forum your ideas! I own a unit worth 450K, not in my name but of my fathers (trust account) because I was at University and did not have a ‘stable income’ and was unable to borrow. I have been making the repayments ect with ease. The mortgagte is approx. 150K. I am renting this property out at $390 p/w to a tenant that has been there since I purchased it in 2000.I am now in the process of buying my first IP – but from a realistic perspective – my first purchase of a property in the banks eyes. NOW I have a number of options relating to first home buyers grant, should it be an investment or my own home. I am buying in Queensland – so this will more than likely be rented out by a tennant. [
]I am confused and this all seems so complicated. From rough estimates from a close friend of the family who will give me the loan – I can borrow approx 250. I have 13K for a 5% deposit – and another 10k for possible rennovations.
Could anyone offer a suggestion relating to my problem because I really need some help here!!!
Thanks Guys,
Brad
Sorry Brad
I think I missed the big question here, so I will just give you my two cents.
If owning your own home is something you want to do, then go for the FHOG why give away $7000 when it’s available to you.
Also, as far as IP’s go, I would use the 13k as a 10-20% deposit on something cheaper, the bank will be happier lending you money in the future if you don’t max out your mortgage insurance.
Talk to your dad about accessing the equity built up in the unit, if you have an agreement with him that it is yours then he should be happy to go that next step. Or it may even be time to sort it out and have it transfered to you (sold! which includes more stamp duty).
So I hope you got something out of that, but you may also like to clarify what your problem is. As for being confused, stay here a few more months and you will be buy’n with the best of them[
]Cheers
Leigh KRead, learn, grow but most of all just do it.
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Is anyone willing to have a chat to me in regards to my current situation? My email address is [email protected]I would appreciate a number of opinions – so if you want to help out – I would be very appreciative.
Brad
Brad,
None of us really know what your problem is.
Could you elaborate a bit more…*************
Australian Property Software
APIM: http://www.apim.com.au
APDM: http://www.apim.com.au/apdm.htm
*************Gday Brad,
A letter from your father, and some supporting documentaion if possible would help to show your ability to service a loan, although it looks by the numbers as though it would pertty well take care of itself!
I’m unsure of the laws surrounding trusts, but you might want to look into forming a discretionary trust, where both you and your father are benificiaries, and directors of the company trustee, then borrow in the company’s name with you as a guarantor.
I’m working with my parents to build our wealth, so I might shoot you an email so we can share some ideas.Cheers,
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonOk, I will explain my current situation. I am paying off but do not own my current unit. It is currently in my father’s name (because I was still at uni and couldn’t get a loan) under some sort of trust – however – I will be unable to sell this unit i.e. get $$ from it until I am 25. A stipulation we both agreed on so I would have some sort of base to work from.
I am now 22. So the availability of transferring this will not take place for 3-4 years which is fine because its sitting there making money!
Now – [
]I would like to invest in Brisbane – a house – somewhere 5-15 km from CDB. I earn approx. 50k a year – and I have from the bank a letter stating I can borrow around $300K. I only wish to place 5% as I have another option which I am waiting on (purchasing some land off a family member who doesnt need it and its right on the water on sunshine coast and its costing me 50K ).So, my problem is – I have the $$$ but not sure on the avenue to go down. It will be a medium term investment – probably negative geared because I am on a high tax bracket so it will help me out there. I’m looking around a 240K property – rented out $250 p/w. I am eligible for the first home buyers grant which will pay for all the legals and stamp duty which is great!
Is that all I should be thinking about? Are there are other things / issues that are evident that I’ve missed.
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!]BradHi Brad,
Is that all I should be thinking about? Are there are other things / issues that are evident that I’ve missed.YES… What are your goals? What is it that you want to achieve?
*************
Australian Property Software
APIM: http://www.apim.com.au
APDM: http://www.apim.com.au/apdm.htm
*************brisbanescouting,
You can’t get the first home owners grant to buy an investment property, sorry
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probably negative geared because I am on a high tax bracket so it will help me out there.The more tax you pay means your earn MORE money not pay out 1 dollare to get back 48 cents.
Cheers
Leigh K[]Read, learn, grow but most of all just do it.
Now I’m completely confused.[xx(][xx(][xx(][xx(][xx(]
If I buy the property, and then rent it out after 3 months – can it then be classified as an investment property? Argh……so if I buy it as my residential property, when can I get someone to rent it…….Brad
Hi Brad,
You can buy the property and rent it out straight away as along as you intend to use it as your PPOR within a specified period of time (1 year I think). The lenght of time that you must live in it is a grey area, it isn’t specified. I’ve heard of people staying in a place while the fix it up, over a couple of weeks, claiming this as their period of residency.
I don’t exactly know what is required as proof of residency, but it’s probably something like bills in your name going to that address or something like that.Hope this sorts out some of your confusion![^]
Good luck[8D]
Scott S
P.S. If you would like some info, like local real estate section or those local real estate books etc let me know and I’ll post them down to you. It will at least give you an idea of the market up here![
]“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon
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