Hi,
I have 450K in equity which I would like to start working for me – my problem is that I am a stay at home single Mum with three children and my only source of income is child support of about 40k per year from my ex. Will it be difficult to get a loan given my lack of employment even if the figures add up for a positive cashflow IP. Any advice on how to get started?????KP1
Hi KP1,
I’m sure there would be a low/no docs loan that you could use. Some of the mortgage brokers here will be able to give you more details. With 450k equity you should be able to do well. Good luck with it.
Regards
SonjaHi KP1 & welcome to the forum,
As Sonja mentioned, your best option would be to contact a Mortgage Broker and have him or her crunch the numbers to ascertain your maximum borrowing capacity, Good Luck.Regards
Steven
Mortgage Broker
Mobile Mortgage Market[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.
You should be able to borrow more than you think. Some lenders will use child support if it is regular and you will be able to use rental income as well. There is always something that can be done especially with all the equity you already have.
Find a good mortgage adviser and things should become clear.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
With most no doc loans, you could get up to 65% LVR without having to declare an income. You can then use these excess funds (if any) as deposits and get more loans at 65% LVR. It will all depend on how high your current LVR is.
Terryw
Discover Home Loans
Mortgage Broker
Click below to email meTerryw | 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
Thanks everyone – I am feeling a lot more confident now. Will action your suggestions!
KP1
KP1
Using equity will cost you interest. & since your income is limited & expense is high, have you considered selling your home & purchasing a cheaper place to live? This will convert your equity to cash you can use to invest, without interest charges
..just my 2 pence worth..
PropertyAllSorts
Doesn’t matter what type of property – as long as the figures stack up!!All Sorts, the idea is to generate income from using the equity that exceeds the interest expense. You only pay for what you use so having the money sitting there waiting for the right investment will cost nothing.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Some people rank seeing the bank manager is second to public speaking.
I would suggest that you go to see a few banks, and tell them what you want to do. They will treat you well.
Your equity is a very good security to them, and you are going to buy positive cash flow. They are more than happy to lend to it. I can see them knocking your door already.
Why see a FEW banks when you can see ONE mortgage broker and look at MANY lenders products and compare them???
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Originally posted by IQ:They will treat you well.
Ha ha very funny.
Terryw
Discover Home Loans
Mortgage Broker
Click below to email meTerryw | 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
heheheheheheheheheh
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Why limit yourself to banks when there are so many other finance providers? BTW which one treated you well IQ? It sounds like a novel experience to me. If you can’t tell… I am very unhappy with my bank right now. This is the 3rd and last bank I will deal with directly – IMO you can’t do better than a top class mortgage broker.
Kind Regards
SonjaHere is an idea…. I do this alot. Why not instead of taking a mortgage…. take control of someone elses property (VIA Lease Option) and look after their payments….. here are the advantages:
1. No loan application fees
2. No Stamps
3. No duty
4. No capital gains tax if you sell it
5. less risk if you get caught in the wrong market… you can just drop the property and move on.
6. positive cashflow if you sandwich lease option the property correctly.
7. get any potential capital growth without the risks.
8. you can still buy the property yourself down the road if you wish.9. increased leverage and less overhead as lenders do not see any mortgage liability.
10. legal shielding as no property titles are in your name so technically you control it all and have no ownership.(title search will come up with nothing).
Not so advantage:
1. you are not able to claim and depreciation and other costs etc as you do not have the asset
I sometimes even negotiate capitalising the payments until I have completed the backend of the sandwich lease. – have fun.
Kiwi
[baaa]I don’t see the not being able to claim depreciation as an issue. The whole payment is deductible – as opposed to interest only – so the tax benefits are huge if you are looking for that. If you spend money on improvements / repairs (whichever one is permitted), they can be depreciated. All you miss out on is building depreciation (if any exists) until you purchase but this is more than offset by other benefits.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Banks will treat you welllllllllllllllllllll.
Hmmm, I have a personal banker, guess what never hear from them. Oops, oh yes once a year when they annually stuff up the 2 loans. Interest in advance, seems to be a problem with them. You guessed it, one of the big 4.
Also… try fitting their criteria, impossible All of the time.
If you want to leverage and build assets whether it be shares, RE, business you need a Smart Broker.
I feel better after that…
[biggrin]Originally posted by The Mortgage Adviser:I don’t see the not being able to claim depreciation as an issue. The whole payment is deductible – as opposed to interest only – so the tax benefits are huge if you are looking for that. If you spend money on improvements / repairs (whichever one is permitted), they can be depreciated.
I think the point has been missed here….. if you have a home locked up under a lease option …. technically you are renting it … so how can you claim on any costs if you have not actioned the option to purchase the property? I do not even think you can defer losses as they are not related to any proeprty you own. however a good accountant should be able to sort out a ruling.
I would treed very warily at the moment. Now is not really the time to be risking your equity.
You are leasing a property for the purpose of receiving an income. This makes it deductible.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Originally posted by The Mortgage Adviser:You are leasing a property for the purpose of receiving an income. This makes it deductible.
Robert Bou-Hamdan
Hi Robert.
Perhaps I have missed your point…. If you are receiving rent that exceeds the rent that you are required to pay… and not paying rates…landlord insurance…water (not excess water)…. how can you deduct anything? it is pure profit and must be declared as income……Thanks,
Kiwi
[baaa]
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