Hi,
My brothers and I (4 of us) are considering buying a ‘holiday’ house in the glorious South West, WA for use by all families.
Brother #1 looks like contributing cash as his share, which subsequently would be used as the deposit, the rest of us mere mortals will take on a mortgage.
Which leads to my question, can this deposit be used as equity by one or all party’s to fund other RE purchases?
Cheers
Hi ET,
You can access any available equity collectively,
Keep in mind this will effect your future borrowing capacity, i.e. if you as an individual apply for finance for a PPR, IP or a car loan etc, the banks will assess you as being liable for the whole debt on the holiday house, the same will apply to your brothers, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
hi ET
great idea but never practical the cost of the house and all associated cost way out lay the price to rent a property for the time you will live in it.
Cost to set up a system to manage correctly is preventative.
without an income the property falls into areas of tax that you need an accountant to discuss with you and he will probablly tell you the same.
this type of investment is all well and good if it is mixed in with other real estate when you are already an investor as it can to some extent work.
lot of people have the same view as yourself put you have asked as an investor and this is not to me a good investment.
rent it out and rent nextdoor for the time you want to visit is a better option.here to help
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