I brought my first investment property in 2001 in Alexandria NSW, I purchased this apartment for $265k, it is leased out for $285 p.w. I rent and do not wish to purchase a home of my own just yet.[8D]It has been re valued at $310k
My brother and I are partnering to buy our second investment property which is for $270k, a three bedroom duplex in Quakers Hill NSW.It has a secure tennant who pays $200 p.w.
He is securing the loan against his home, and I am planning to refinance and realise some of the equity in my apartment. I need $13500 as we are getting 100% finance, this amount will go straight into the repayment of my brothers home loan as he is bearing all the risk.
I am unsure as to whether this is the best way for me to go, any ideas[?]
Welcome aboard Bassett [
]Good first post – and one with lots of curly questions attached most of which can only be answered by how close are you and your brother? From a brokers perspective for lending purposes – if you are joint applicants the banks will want to see joint ‘benefit’ from the deal ie splitting rental income, but it’s not too hard to organise normally.
Re whether you should or not – I’m not sure from your description whether this is all for your benefit or joint? Are you doing it to help each other or because you don’t feel you can do it on your own? Have you seen an accountant and a broker to figure this out with you? If you two have never invested before, and there are wives, other children etc also potentially altering how things pan out, I’d try to avoid it myself. JV’s for short-term are great, for long term are messy.
Good luck!
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Mel
[email protected]Snap,
my brother and i have done exactly the same thing although we are about to secure our third property, and in my mind it’s the perfect team. If you get along with your brother as well as i get along with mine then i cant see many problems – i feel its so much better than teaming up with your wife/girfriend, although its sad to say, in the most marriges just dont last unless of course you truly happy. where as a brothers for life.
Good luck to you.[
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