Iam recently seperated from my wife and jointly own a 2 acre (unsubdividable) property with a dual occupancy – 1 title. We are currently looking at putting it on the market. Current market sales indicate it will sell for approx. $430 – $450k We owe $275k. Would I be better to take my share and look for investment possibilities or buy her out and remain paying a high premium with the possibility of better long term gains??? My question is can I start with as little as $50 – $60k and enter the property investment market?? any response from people who have done this appreciated
Cheers Betto1
Hi Betto
Firstly sorry to hear about your split up and hope all works well for you in the future. I have not and hopefully will not ever be in your position so i am not writing with experience in relation to starting again.
All i would say is if you sell the property then you will incur selling costs and presumably buying costs when you purchase again.
All of which add up.
If you look to buy out your wifes interest then you would no doubt discount her share by such costs and possibly be able to negotiate a more favourable settlement with her. She gets her money in say 45 days rather than 90 -120 when the sale takes place.
This all depends on your loan serviceability and how the loan is structured as the last thing you want to do is find that your income prohibits you in moving forward and she is left with cash in hand to go and start again.
On the moving forward bit again serviceability is a factor and without more knowledge it is difficult to make an assessment howeer remember that many lenders will now go upto 95% on an investment loan so you would only require a small deposit and to be able to cover your acqusition costs.
I personally would be in favour of retaining the property subject to whether you are happy to live in the property and it services your needs and requirements. Also it is important that you feel you will get some future capital growth from the property.
Good luck on your decision and let us know if we can be of further assistance.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
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