Hi all,
My partner and I have decided to try purchase our first IP together, at present I have 3 IP's in my name and about 870k in deductible debt and 32k in non deductible debt with rental returns of just over 1k a week. I earn about 140k a year and my partner earns about 60k a year and she has saved about 22k so far. I don't have equity I can access at this stage and at present I'm focusing on paying down the non-deductible debt and realistically should have this paid off by mid year.
I am unsure what strategy to use at this stage and the best way to structure this. We envisage buying our first home together in about 2 or 3 years but would like to capitalize of the market in Brisbane/Gold Coast now by purchasing an IP. Any advice would be great.
Cheers
Rudra
Hi Rudra
I will assume you have done the numbers and maximised all of your deductions and minimised all of your expenditure.
Without any equity available (And again assume there is nothing you can squeeze out) you are going to be fairly limited.
Even buying a property for say $300K in SE Qld is going to normally require a minimum of around $32k in a combination of deposit, Stamp duty, mortgage / transfer registration etc assuming you can get the LMI capitalised.
One of the products we will be launching at the Property Know How Club during 2013 is an exclusive 100% loan product for investors only with a 90/10 split between conventional and private loan.
Away from this the structure and holding of the property will be important.
If it is neutral or positively geared probably are going to want to consider buying the property in your partners sole name and have both of you as borrowers (assuming that a Discretionary Family Trust structure is something you have considered and dismissed).
Look forward to meeting up with you at our Brisbane meetings.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Richard,
Thanks for that, I think I had a similar thought and realistically will have to wait about 2 months before we will have the savings and equity available.
A Discretionary Family Trust is something I have considered as this will probably be the first of many IP's we purchase together.
Look forward to meeting up with you and everyone else during the Property Know How Club meetings.
Cheers
Rudra
Qlds007 wrote:One of the products we will be launching at the Property Know How Club during 2013 is an exclusive 100% loan product for investors only with a 90/10 split between conventional and private loan.
sign me up to a few of these richard, got a few more properties i want to purchase this year.
What are the loan terms looking like. Pay off private portion of the loan within a shorter time frame, higher interest yes ?
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