Hi ,
I am asking for advice on this important step I wish to take.
I have recently found a very good double storey home (36 squares) in the North Melbourne area.The property was listed at 350 K but have negotiated it down to 315 k with a 90 day closing. I already have two investment properties, and the Bank has agreed to a loan on my name alone for upto 180 K.
A friend of mine (non-resident Australian Citizen) has agreed to invest his personal funds (no loan) into this for the balance amount of about 140 K.(45 % full equity).
Our solicitor has asked for both our names to be on the title, whcih sounds fair. We may draw up a ‘tenants in common’ agreement and keep it with a clause for a review of the situation every 3 to 5 years.
I would like to invite anyone to say something, (who has any experience or would like to advice)
so that we may proceed further.My non-resident friend would also benefit from your advice.Thanks.
Ash[
]Check that your bank will accept two people on title but one on loan – some don’t.
Another idea might be to have him place a caveat on the title. A caveat means that someone else has an interest and the property cannot be sold unless it is withdrawn by the person with the interest.
I am sure your solicitor know best but check it fits with your bank too.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985
]
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