Hello, my partner and I purchased an investment property in October 2003 due for completion in March 2006. We are buying our own home and have one other investment property. Recently my partner’s employment was terminated and I am worried about the fact we have an unconditional contract for the March purchase. I believe it will now be difficult to get finance in view of the situation above. I wish to onsell the property before it settles, to hopefully take the pressure off. What is the best way to go – considering our circumstances[hmm].Robibob
Damn tough.
Could not your partner attain another JOB ? or is something else precluding that…
I don’t know how to help.
Perhaps go halves with someone? Buy it back later.
Just sell or wrap the contract to someone else?
Sorry for the lack of advice.
Good Luck
Hi Robibob,
I suggest you speak to your solicitor to see if there are any clauses that can get you out of the contract.
How much deposit do you have for the new property? If you can come up with 30% you may be able to use this to get a no-doc loan (the rates for these start at 6.99%), however you would of course need to make sure you will be able to service.
Having said that, it would in all probability be preferable to not incur more debt while one of you is unemployed, so selling the property may be a good option.
Good luck.
Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Ph (03) 9662 1999
Fax (03) 9662 2044HI Robi,
A few things you can do – ‘encourage’ partner to seek additional employment. According to the stats it seems jobs are a plenty in the outside world so this could be the ideal opportunity to explore new fields.
I would also arrange an immediate appointment with your broker/banker to see what your options are in terms of meeting your obligations or not. Given the long time frame between contract signing and settlement it is highly likely that the bank will do another assessment soon anyway. It is essential that you and your partner get on the front foot with this issue.
Andf finally – consider the option of borrowing additional funds (if able to do so) so that you have access to additional money to help you with the loan repayments. While this may not be a sustainable course of action it may buy you some time so that you are not forced into a fire sale scenario.
Certainly worth a look.
Really important that you do see your broker/banker.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958hi robibob
what structure are you buying this property in you can buy in a company and trust and it doesn’t matter about your spouse as mine doesn’t get involved in any of my projects for protection of our assets.
2. have you any excess equity in the other investment property if yes us this to hold this property and leverage of both.
3.sorry but its never hard to get finance its hard to work out how you pay the financed you have got.
4.I would talk to a broker pronto and get a refinance on your investment property to the max using your partners current group or wage slips then get get a letter from a lender for the value of the unit then using the cash from the other property put 12 months of interest in a term deposit with the lender that is going to lend on this property then wait service ability won’t be an issue ( discount the amount by the about of 12 month of rent).
simple if the broker organises correctly.
and sorry but this never happens
to hopefully take the pressure off. What is the best way to go – considering our circumstances.
it the market we are in.
this is my 002 worthhere to help
If you want to get involved in some of the projects I’m involved in email to [email protected]If you want to resell before settlement, just approach an agent and put it on the market – do quickly before time runs out.
Terryw
Discover Home Loans
Parramatta
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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