Do you have information on success rates in property investment for singles (as opposed to double-income families)? Do you know of any strategy on how to deal with the banks when you are on your own (What the banks like to hear, how borrowing power is calculated, etc.)? I would like to find out about your personal experience with property investment if you are single.
Hi
It shouldn’t make too much difference wiht lenders. They do not treat singles any different.
A lot of people are married and one of them stays at home not working. This hurts serviceability as the lving expenses are hgih for two people.
I have a lot of clients who are single, and still living at home with parents and are doing well – ie not paying rent helps a lot!
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Two Words
Investing Partner
Which is what i need pity im in adelaide though
[cigar]Hi Isabelle,
Here’s two more:
Mortgage Broker
Although I agree with TerryW, you shouldn’t have too many problems simply because you are single. But if you do, try one of the MB’s here in the forum; they are a great bunch and will certainly steer you in the right direction.
Cheers, [biggrin]
Jo
heres one question
Who would you trust more an investment partner taking the same risks as you or a broker who is simply getting paid
[cigar]
chivatoHi Isabelle & welcome to the forum,
I agree with the comments from Jo & Terry,
Lending institutions do not tend to discriminate between single and joint applicants,Here are some useful tips on how to increase your borrowing capacity,
Consider reducing the maximum credit limit on your credit card, as credit providers will assess repayments on the maximum credit limit, not on the outstanding balance,
Try to avoid or if possible consolidate personal loans, these attract a higher rate and in most cases are non deductible,
Consider interest only repayments on investment loans, this will increase your serviceability on future lending, Hope this helps.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Gambini,
How does your comment relate to the original question ??
I am sure that you have lost, or missed the point.Doing ANYTHING in partnership is inherintly risky.
An investing partner can leave you carrying ALL the risk very easily.A mortgage broker only gets paid if he delivers on the service he provides…ie sources appropriate finance for you.
The final decision is your to make, there is no risk in using a mortgage broker.
There is significant risk in partnesships.In fact you should consider a broker an ally and part of your investing team.
I am not a broker…but I do use one.
KP
i’ve got a similar dilemma. I’m trying to decide if i should invest with a friend, and try and create a partnership for the future, or whether i should go in it by myself.
THere are pros and cons both ways obviously. At the end of the day, you want to be investing with someone because you both bring two different things to the partnership. I think that it may not succeed if your talking about doing exactly the same thing. But then again, in steve and dave’s case, i guess they both are into the same things… accounting etc.
Originally posted by Gambini:heres one question
Who would you trust more an investment partner taking the same risks as you or a broker who is simply getting paid
[cigar]
chivatoI’d trust the mortgage broker.
The outcomes they want out of the deal are clear and there’s a clearly defined exit.
With an investment partner you have to be very mindful that you are tying yourself to a long-term relationship. Changing needs & desires can really impact on the stability – just like as it does for any other relationship.
Make sure the legals are in order. It helps to prevent & manage the relationship risks.
Cheers,
Aceyducey
(PS: That said, I don’t believe in pre-nups, though these are simply a risk management tools to manage a financial relationship if the other bits break down)
In theory, there is no difference between theory and practice. But, in practice, there is.– Jan L.A. van de Snepscheut
Quote:Originally posted by gilad:i’ve got a similar dilemma. I’m trying to decide if i should invest with a friend, and try and create a partnership for the future, or whether i should go in it by myself.
I would go alone if possible. In my job I have seen the downside of partnerships and I would never consider it unless it was for a short term project such as a development and sale.
I don’t think the comparison between a broker and an investing partner is even reasonable. They are two compltetely different things. The broker will fnd you the finance to meet your need and the step out. The partner will put up funds and then you will have to deal with him for the duration of the property ownership period.
You should still use that poor broker too [biggrin]
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Isabelle,
I was told years ago that investing solely, is considered to be on the asset side, rather than on the liability side (just as a PPOR is considered a liability rather than an asset).
People lending money in one name is a huge amount of the mortgage basket these days, due to changing demographics, women marrying later etc.
If you earn a decent income, and are investing in your name, it is possible you’ll become the banks’ darling, rather than being seen as somehow deficit for buying in your own name.
kay henry
Ok this is a bit tricky to explain so I will do my best.
If you buy a home for $200K with a partner.
You both own 50% of the asset and are entitled to 50% of the rent.
Here is the kicker. When you then go for your next mortgage the bank will assess you at getting 50% of the rent and having 100% of the debt.
You are both jointly and seperately responsible for the debt.
This is a huge brake to future growth and the number one reason I wouldn’t even consider doing it myself aside from the issues that normally go with a partnership.
Hope this makes sense.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Personally, my golden rule, never buy in joint names, even with your husband/wife!!!
I have been buying separately since I was single, and it hasn’t changed as the result of two marriages. Whenever I refer to my IPs, I am referring strictly to MY assets, not my husbands, that is a different story.
BTW…IMHO a PPOR is an asset not a liability, but more than that, it is my “security blanket” or to some a SANF!!! [biggrin]
Jo
I actually meant that as a mortgage on a PPOR is often said to be a liability rather than an asset because it’s not income-producing / tax-deductible. It’s a great asset to have when ya have paid the bugger off, I imagine
kay henry
When it comes to investing as a couple or going it alone give me going it alone any day. My ex loved to spend and was a real drag to our financial independence. Since we parted in ’99 I have more than tripled my net worth without her (courtesy of the boom of course but I am far more focussed financially). Also of great value is a good mortgage broker they can work miracles.
The only real down side is you don’t have a backup (working partner) if you dropped out of work for some reason. The way I addressed that was to keep a lot of my cash out of the deals and put them in offset accounts against the IP loans. There they can be utilised if I stopped working for any length of time.
Hey mono,
Pity the family law courts don’t see it like that (what’s yours is yours and what’s his is his).
Marital assets are marital assets no matter whose name their in!!!!!So what are the actual benefits of investing with a partner? I’m thinking going 50/50 with deposit adn profit/loss.
is this right?
Originally posted by qwerty:Hey mono,
Pity the family law courts don’t see it like that (what’s yours is yours and what’s his is his).
Marital assets are marital assets no matter whose name their in!!!!!Hey qwerty, ain’t it the truth!!!!! [glum2]
When I say MY IPs it is only as a reference point, as I do not refer to my husband’s IPs whenever I answer anyone’s questions.
Believe me, I don’t buy under my own name with the dellusion that this will safeguard my assets in the event of (another) possible bitter divorce settlement!!!
I know only too well (unfortunately from first hand experience) what the law courts decide; I have not only been battered, flipped over and rebattered, but well and truly fried by our so-called “justice system”!!!![smash]
Not happy Jan!!!! [glum]
Theres a lot more to loose than houses. I lost my kids in the divorce and I get to see them but its not enough.
Sorry to hear that Property Lee; that’s awful!!!!
I’d die without my kids; reckon I would’ve fought like hell, maybe even done the unspeakable before I’d let him take my babies!!!!
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