Hi All
I have a bit of a problem.
My brother has offered me a deal of a lifetime, to go in halves in a house that he bought 5 years ago for $15,000. The house is now worth upwards of $150,000 and my Brother has put an extra $15,000 in repairs, all he wants is $15,000 and i get a half share.At this point i don’t have the money, but will have it in about 6 months which is not a problem as far as he is concerned. I have been talking to a friend of mine and he said that i would be better to get my name on the deeds etc and then put a morgage on the house to get the finances.
The problems i have are as follows:
1. I don’t have a clue how morgages work or whether i can morgage the house for only the $15,000 i need to get my half share.
2. The house stills needs some reno’s done before it will be ready for tenants so will i be able to afford the repayments till i get a tenant in there.
3. or would i be better to wait till i have the $15,000 and then have all the money that we get in rent for myself.
Any assistance or advice on this matter would be greatly appreciated.[biggrin]
Ty
Work smarter, not harder.[grad]
Originally posted by Ty:3. or would i be better to wait till i have the $15,000 and then have all the money that we get in rent for myself.
Save the money. Dont borrow if you dont have to (as you said, you dont need the money immediately).
Definately get you name on the title/deed of the house.
Cheers
Damon
In theory, there is no difference between practice and theory, in practice, there is….
Are you sure you are only paying $15,000 for it? Or does your brother have finance on it, and you will only have to put in $15,000 cash? It sounds too good to be true.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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
Terryw
He paid cash for the house 5 years ago, but due to his work(dairy farmer) he doesn’t have the time or money to finish the repairs. I am currently in the Navy and am going to Iraq for 6 month and will come back with an extra $30,000 for being there so i will be paying him in cash as well. i can understand that you think it is a deal to good to be true, i did to but it is a honest deal and once i finish this one i will be going hard for the next one.
In that case, you would be able to get a loan for it easily, but both of you would have to be on the loan. Also, many loans have minimum sizes – frequently $50,000+ , but some (eg ANZ) do $20,000 loans.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
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
Colonial have $10,000 minimums for a number of their loan products, but you need to be wary of discharge fees if you are going to pay it off quickly. As Terry says you’ll need to have your brother on the loan as well so perhaps you could work out a deal between the two of you. Stay safe in Iraq and good luck.
Mortgageman
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