Can anyone give me some advise on how I should tackle this situation. I have a property (residential land)which is freehold, I have it for sale at the moment, because its 1 1/2 hours from Melbourne its taking alot longer to sell, been on the market 2 months. We are currently moved and are renting in Adelaide, which is dead money. I’ve asked around what can I do to purchase my own home or unit instead of renting. Friends have told me to get a line of credit against the property I own to borrow for a unit or and investment loan, I’m still unsure which way I should go.Can anyone help, I don’t have a huge wage approx $40,000 p/a. but I would be most appreciative if someone could advise me which way I should go.
ThanksHi babs
Not sure what the value of the land would be or indeed the Post Code. A LOC is one way but there maybe other better alternatives. Have you a property in Adelaide in mind at this stage. Happy to crunch some numbers for you.
Cheers Richard
[email protected]There is no such thing as a problem. Just a solution waiting to be found
Richard Taylor | Australia's leading private lender
Richard,
The property in Vic is valued at $ 95,000, postcode 3523, In Adelaide we haven’t found a specific property as yet but looking to pay about $130 to 140,000 most likely be a unit as houses are a bit over our budget at this stage. We do have a car loan also at the moment $ 22,000 that’s why we would like to borrow at least $160,000 car & home as one. I also, should tell you we don’t have spare cash for a deposit. what can we do Ahhhhh!
Babs
Why not just use the security of the land as additional collateral when you purchase your unit. Off the top of my head the Loan to Valuation ratio will be around 70% dependant on what price you eventually settle on.
The lender would take both securities as collateral and then release your land when it was sold on the basis that you reduced your home loan accordingly.
Make sure there is no penalty on a lump sum reduction i.e avoid a fixed rate unless it allows capital payments. A Professonal plan will also give you a bit of flexibility and reduce costs if you decide to wrap down the track.
Assuming the land is standard and zoned residential you shouldn’t have much problem. If you want to shoot me an email I would be happy to give you some further ideas.
Cheers Richard
[email protected]There is no such thing as a problem. Just a solution waiting to be found
Richard Taylor | Australia's leading private lender
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