G’Day,
I’ve just purchased 2 x 3bedroom units on a quarter acre block in western victoria.
Due to my having a bad CRAA (due to past unemployment) I’m in the position of being offered 20% vendor finance but still need a second mortgage (or something) to pay out my remaining personal debts. Can anyone give me some advice on the best way to achieve this?
The property is cashflow + about 10% pa.
Any advice as to the best way to go forward would be much appreciated.GJC
Hi Gary
Without detail it is a bit hard to advise, however, the old fashioned way that could work quite well is to have the property finances completely separate and pay out your personal debt from personal income- even if that means negotiating a payment schedule with each of the creditors. Chapter 9″ The Clay tablets from Babylon” in the book ” The Richest Man in Babylon” may give you some ideas on how to do this. I have seen a quote somewhere that says “It is impossible to borrow your way out of debt”
Hope this helpsThanks Battleships,
I have 2 alternatives – wait another 4-6 months and have no personal debt – or buy this and gain a MAJOR tax benefit ie. extra 10K plus with which to pay out my personal debt.I fully understand (& have read) re paying off personal debt, however I believe this is an exception. I just don’t know whether to get a personal loan or a 2nd mortgage to cover it. I am confident of being able to service the debt – no matter what. I just need advice re the best method for clearing personal debt in this instance.
Once free, never to return to incurring high levels of personal debt!!!
GJC
I don’t like your chances getting either a person loan, a second mortgage or a credit card with a bad credit history. As has been said, without knowing more details, we cannot help you.
Robert Bou-Hamdan
Mortgage AdviserCommercial 2nd mortgages generally only go up to 80$ LVR and the rates are high – up to around 24%. They may not be hard to get, if you have the equity, which you probably don’t.
Have you secured a first mortgage yet? Maybe you culd bump this up a bit, and/or ask the vendor to increase the amount they are offering as finance. I imagine it would be hard to gain more than 100% finance, but you never know until you ask.
Terryw
Discover Home Loans
Mortgage Broker
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
Are you putting any funds into the purchase?
What is the postcode and are the units on one title?
With your bad craa, have the debts been paid or are they unpaid defaults.
There is virtually no chance in obtaining a unsecured p/loan with a bad craa. I’d need to know a bit more info before I could let you know of some options.
State Manager
Wholesale Mortgage Lender that deals only with brokers.
20 years in Finance Industry
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