All Topics / Help Needed! / equity cash property

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  • Profile photo of dollyleggsdollyleggs
    Member
    @dollyleggs
    Join Date: 2004
    Post Count: 2
    May 4, 2004 - 11:39 am

    I am on a disability pension $460 pf I have a mortgage $90 000. My house is worth $350-400 000. My investment partner earns $500 pw & has $220 000 cash. Neither of us have debts or dependents. We would like to buy a small cottage as 2nd residential and investment property together. We are forming a business and consider buying as a business, any ideas?[bonjour]

    dollyleggs

    Profile photo of GeronimoGeronimo
    Member
    @geronimo
    Join Date: 2002
    Post Count: 167
    May 5, 2004 - 12:27 am

    Hi Dolly and Welcome

    You might want to try the Tax and Accounting section for this question on structures.Might get more response.

    Good Luck!

    Brendon

    Acute Mortgage Reductions
    http://www.acutemr.com.au
    [email protected]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    May 5, 2004 - 2:42 am

    Hi Dolly

    Lenders don’t really like taking into account incomes from pensions.

    Depending on the locations of the properties, you may be able to get an asset loan at 65% LVR – no income declaration required. eg using your partners cash, you could probably buy something around the $360,000 mark – leaving your loan as it is. Intrest rates are higher for these loans – around 7.5%pa.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    May 5, 2004 - 3:53 am

    There are NODOC loans available from 6.85% and as Terry points out will be limited to 65% of the total value of both properties.

    I am unsure whether a business setup will be required. You probaly need to speak to an accountant to ensure you have the most appropriate structure.

    All the best with your plans.

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429
    May 12, 2004 - 12:11 pm

    Hi dollylegs

    I would really investigate what sort of structure you and your partner want to buy in, ie how much flexibility, and get out clauses etc.

    If it were me, I would look at buying as a unit trust, which I believe is better than a company….

    Talk to solicitors/accountants to work out all scenarios.

    Cheers
    Mel

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