All Topics / Help Needed! / New investor
I have inherited a property with my sister and willing to buy her out for $60000, I will have to borrow $40000 to pay her out and the property is worth $120000. Help, does anyone have any suggests about how I can go about this??? I have no idea??????
Hi SusanJ,
Thanks for your post and welcome to the forum.
Note: I have assumed that the property came with clear title (i.e. no existing debt), and that you want to keep it rather than sell it.
The easiest way forward is to seek out a mortgage broker to help you arrange a loan for $60k. As this is only 50% of the current value, you shouldn’t have too much difficulty in sourcing funds (subject to what you earn as an income).
As MH says below… what happens next is your solicitor arranges for the title to revert to your name (rather than joint names) on an agreed date when your loan funds become available.
If it was suitable, what I would also say to your sister is not to offer 50% of the $120k, but 50% of a slightly less amount to reflect that if you had of sold it then, because of sale costs, the actual monies received would have been less than 50% of the gross $120k.
Such an adjustment / negotiation seems only fair as you shouldn’t be penalised for deciding to stay in the investment.
Now – are you keeping this property as an investment? If so, what are you hoping to get out of it in terms of income and cap growth?
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Is easy. You need to apply for a home loan and have a solicitor change the title.
No need to use a real estate agent.
You can go direct to a bank or use a mortgage broker to find you the best deal.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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