Hi all,
I am new to this forum. I have read Steve’s book along with various other property investment books. I am looking for ways to be able to purchase my first investment property with little cash available.
One of the ways I can do this is to use my parents’ home in NZ. As they are not in a position to be recognised by any lending institution due to their lack of employment/income/assets etc, I am considering transferral of title of their property into my name or a Trust (still learning about the best structure). I can then borrow against the property to the tune of say 80% max, and use the funds to both value up the property and purchase other properties. Their home would be valued at approx $120k, and I will only be required to pay my parents $17k to do this.I live in Brisbane, and recently refinanced to a LOC loan – Bank valuation $220k, LOC limit 80% or $176k.
I welcome any advice, suggestions, thoughts or ideas as to whether this is worth doing or not, and where I should start.
[8D]thanks & regards
Hi,
You say you have a LOC to the value $176, can’t you use this for cash flow? Or are you full drawn on that?
Be careful with your parents house, I’ve seen similar schemes go haywire. If you have to use your parents place as equity, don’t go the whole hog, take it slow.Just some thoughts,
Sue [
]Be careful not step on the flowers when you’re looking at the stars
Thanks Sue,
Yes I am drawn on the LOC, to $170k.
Thanks for the word of caution about using my parents house for equity.
I will plan carefully, to the extent that if it seems not worth it or too risky or just plain too hard, I won’t run with it.
But I am still gathering info and advice.regards
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