A mate has told me he will be selling his house soon, he had it valued at 65K, its a bit rough but would be rentable with a little bit of work.
My problem is that currently I owe 29K on mine, I am also about to consolidate all of my loans into one and also get 10K for another property, this will bring my home loan up to 52K.
Not alot I know, current house valued at 90K, asset in other house around 30K, plus asset in mums (deceased) house would be around 60K
Problem is currently I earn around 20K a year.
His house will not be for sale for a little while yet but I would like to start acting now.
How will I go about this?
Second house will be sold around march april next year, mums, no idea yet.[fear]
Does your friend need all the upfront money when he sells the house??? Why does he need the money. If he dosen’t need it that urgently offer to buy it from him but he leaves in the deposit for 1 yr (you pay intereest on it, just like a bank, revalue props. and give him back his deposit). There are lots of other creative things you can do, check out http://propertyinvesting.com/strategies/creativefinancing.html
Rgds.
Lucifer_auHe posibly would need the cash to pay of the bills, long story but his wife now resides with the bloke next door.
Bathroom needs work, and posibly the kitchen, he states you could posibly rent it for around $110 per week.
There is a garage but it has a dirt floor and is wooden, maybe a lick of paint will do that.
Have to ring the bank tomorrow so will ask them about the posibility of getting a investment loan.
Also like the idea of drawing on equity.
Its just over the positive cash flow bit but I can see potential growth in value.
Its in a quiet court location, its valued at rock bottom, its got room for improvement.
Go through a mortgage broker. Don’t go through a bank.
If you want to see your borrowing power go here: http://moneymanager.smh.com.au/tools/calculators/borrowingpower.html
My only concern is you being able to servie the debt, as it’s not going to wipe that much off your tax…
Rgds.
Lucifer_auWhat about this, I will approach him tomorrow as I feel this is too good an investment to miss.
I approach him on, I purchase the property on the basis that he signs a lease for 12 months, he will be able to pay his bills and also have a little left over, rental at $110 per week will just cover the payments.
At the same time he saves money due to not paying loans etc off, he being on some sort of benefits will also get rental assistance, I could get him to check while he is there as to how much he gets.
I could also ask him to pay the rates for the first year and also any water rates etc or even up the rent by an extra $10.00
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