Hi to all.
We are considering what to do with our current equity.
First thing, our main aim is to pay off the PPoR.
Our equity is around 250k and we like the sound of building new and selling.
Our area, Adelaide Hills, is in the middle of a growth and houses sell well so this seems to target what’s needed.
Land sells for around what our equity is. My father is keen to join with me in this venture.
Any feed back is very much appreciated.
Kind regards
MikeR
Hi Mike
Sounds like this is equity in your current property and this can be a useful tool in building up your future wealth.
With the new property you would probably want to consider buying in a Discretionary Trust with maybe you and father as Trustee and then numerous Beneficiaries.
You would utilise the equity to fund a deposit and i would prefer to see the establishment of an investment Line of credit sitting in heond your present loan. Separately the Trust would fund the balance of land purchase and construction. Of course loan structure may vary depending if your father is looking at putting in equal equity or cash deposit for the project.
Your Mortgage Broker can probably advise you on how to structure this so that if successful can be repeated again and again.
Richard Taylor | Australia's leading private lender
Thanks Richard for your feedback.
Looks like I have some more investigating to do.
Kind regards,
Mike
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