I have been feeling for some time that property investing was the way to go, but with so much conflicting info doing the rounds had put the idea in the ‘Too Hard’ basket.
Until I read Steve’s books over the Christmas holiday. Am now fired up, but my circumstances are a bit unusual. Having only had negative advice from family and friends, I thought I would ask you guys.
My husband was re-trenched several years ago when the college he was working for closed down, taking everyone’s super with it!
Due to his age , he was not able to get another job, so after about a year we sold our home and bought a small, not very profitable small business, but at least it gave us an income. ( I don’t want grilling over this bit)
We then moved into a State housing home, which we would like to buy, but have been unable to get a mortgage, due to being self employed.
We are also keen to start investing in property to give us an income to live off before my husband retires.
Now for the tricky part.
If we are able to get a loan (we have savings of 70K)and buy our home, we would not have enough to start investing, but if we buy investment property we no longer qualify to live in our home.
I have been mentally chasing my tail trying to solve this.
Does anyone have any ideas?[blush2]C.K.
Perhaps if you bought the property in a trusts (or company’s) name you might avoid having to move out of your place.
The reason is basically a trust/company are completely separate entities and as such might not be seen as connected to you.
You might have to have a trust with a corporate trustee (a company is the trustee)
I would definitely seek legal advice on this though.
Rgds.
Lucifer_auHi CK and welcome!
I’m assuming that this is the secon edition of the thread you accidently deleted
You said that the one reply that disappeared with the original question was from Mortgage?Someone? I’ll take a guess that it was Mortgage Advisor (Robert).
I’m not too sure about Housing Dept regulations but I think that with a deposit of 70k you should be able to get some sort of loan to but the place. Then use the equity to start investing. Just an option that sounds reasonable to me.
Regards
SonjaHi CK,
Have you tried applying for a lo doc loan?
I was in the same boat as you when I started out investing (a year ago) – self employed, renting….but applied for a lo doc loan and was approved. It was a tremedous help, as I don’t think I would have been approved at a ‘traditional’ bank had we not had the access to lo-doc.
Also, what sort of business do you currently have?? Not to grill you….just may have some tips that you may not have thought of to help make it more profitable.
CheersCK,
Don’t think that your own home is not an investment either.You also make mention that you want to start earning an income off property before your husband retires. Generally, it takes time for any one property to start providing you with a sufficent enough cashflow for you to live off. Are you giving yourself enough time to be in the market?
Option one might be to purchase the property that you are considering, and seek to pay down the loan over time. Say after 1 to 2 years, you maybe able to utilise the equity to purchase an IP.
Option two might be to purchase an IP now and rent concurrently. This something that I do.
Lucifer_au had a good suggestion regarding trusts and marrying the above two options.You may also want to look at the discussions being made on Derivex (interest free loans) on this site. They have a web-site, http://www.derivex.com.au
James
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