best option

Viewing 5 posts - 1 through 5 (of 5 total)

wealthseeker
Member
@wealthseeker
Join Date: 2004
Post Count: 28
November 9, 2009 - 6:08 am
Hi,
I am finally hoping to buy my first investment property. Financing this is the first problem.
I currently have a mortgage of $173000 house worth around $250000+, bought worst house in best street.
The house next door has recently become availabe now it’s the worst in best street, renovated properly would easy go for $500000 in 5- 10yrs.This house is in a bad state of repair and would need immediate reno for rental.
As my mortgage is in my name only and my income is only around $33000 per year i am not likely to get approved for finance i think??
My husband has credit problem so will not be approved although his income is around $45000.
We are hoping to do a rent to buy type arrangement if and when the owner can be contacted to see if he wants to sell.
Other option is myself and father go togeather on loan using his equity (owns home outright $280000)
Ideally i want it at least in my name for my own financial future or husbands?
What do the wiser members on here think our best options would be?
I believe we may get this house for around $180000 with maybe $50000 needed for full reno $10000 possibly to rent out.
Old home in street full of older homes, quiet flat walk to main street in regional NSW
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
November 9, 2009 - 1:08 pm
Is your dad on a good income? if not then his equity won't help. You will need to demonstrate serviceability. You probably could do it on your income. What about another family member working with little or no debt?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
wealthseeker
Member
@wealthseeker
Join Date: 2004
Post Count: 28
November 9, 2009 - 11:54 pm
he gets around $46000 i think, he has no debt or problem with serviceability
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
November 10, 2009 - 12:11 am
well that is probably a way to proceed. Get your dad involved. Maybe a trust will work well too. Both can guarantee the loan and both incomes taken into account together with rent.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
jenniferhudson75
Member
@jenniferhudson75
Join Date: 2009
Post Count: 10
November 10, 2009 - 10:27 am
May I suggest Seller financing. It is an important and popular tool that can help buyers purchase a property they could otherwise not be able to buy. Sellers are sometimes willing to become "banks" for the buyer, taking payments just like a bank would until the loan is paid off. In all other respects the transaction is the same as through traditional financing — the deed is transferred to your name, and you simply make your payments to the seller instead of to a bank. More and more sellers are offering financing because the rate of return they can get is better than through income-producing investments like certificates of deposit, money market accounts, or other "safe" investment vehicles. To better understand, you can visit http://thewealthcollege.com. This has great potential. It worked for me.