Forum Replies Created
Thanks for the info!
Is it necessary in this situation to have a 20% deposit (equity from my parent’s land)? Or can it be done with 10%?
Thanks again!
Is it easy to find a lender that assesses it this way? Could it work for multiple properties if we were to find the right lender or would we be better off keeping everything separate from now on?
Cheers Terry,
You make some good points.
Ossi.
Hi Derek,
No don’t want to be linked by LOCs forever.
What I would like to do is access the equity I have in an investment property which is in joint names and then use this equity as the deposit for my next IP. I don’t want my friend to have to guarantee my next IP (which will be in my name only), therefore, I thought I could take out a LOC for 50% of the current equity to use as the deposit. I know we will still be linked by the LOC at this stage, but I was under the assumption that once the LOC is repaid all our links will be severed (apart from the original IP). Is this correct?
The reason I want to do this is because I only have the one IP at the moment (the one in joint names I referred to above) and I want to buy another one on my own, but to do it I would need to draw on the equity in the joint IP. Obviously, my friend and I are looking to pursue different things, therefore, don’t want to be tied to each other beyond the current property we jointly own.
Still all very new to this so any assistance would be greatly appreciated.
Cheers,
Ossi.
That's great! Thanks for clearing that up for me Michael!
Thanks Michael.
The main thin I wanted to confirm is that this is an option in order to use the equity in the joint investment without having to guarantee each other, or buy another joint investment. We would like to go our own ways but still be able to take advantage of the equity that is in the joint investment without being forever tied.
So if there if sufficient equity, is the process is quite straightforward? I have never done anything like this before so know very little.
Cheers,
Ossi.
I was wondering the same thing, as I am in a very similar situation to James Woods.
Would it be relatively simple to organise two lines of credit and use these as deposits for other properties?
Once the lines of credit are paid back, would that effectively sever any ties between the two parties. (e.g. they will obviously be tied by the joint ip, but any additional ones purchased in individual names would be totally independent of the original joint property).
Please help, I'm struggling with this issue…
Thanks for all the responses everyone… I am starting to get the impression based on all of these comments that what I am thinking about doing is a BAD idea!! haha.
The reason I am so desparate to buy is because I know I won't be back in full time work for at least another 1.5 years. I figured if I could get a load approved before I left work and secure another positively geared property I could build more wealth over that time.
So, I have decided to pursue another idea. I currently own an investment property with a friend in equal shares. He would like to buy his own property elsewhere but does not have the deposit to do so. He would like to sell his half to me, effectively removing himself from the loan making me the individual loan holder. We currently have two separate loans against this property both in joint names which allows us to pay into each separately, making it easier to manage. For example the if the loan against the property was $100,000 we have two separate loans of $50,000 each in joint names (Loan 1: John & Steve $50,000, Loan 2: John & Steve $50,000).
To get to my question, if my friend wished to remove himself from the loan leaving me as the sole loan holder would they banks need to assess me again, or is the original assessment sufficient? I wonder this because effectively I was assessed at the time as being able to service the entire loan, we both were. The benefit of me doing this is that the property would be 100% mine and my friend will have the deposit to buy a property elsewhere. Is transferring a loan from joint to individual an easy and cheap process?
I hope this makes sense, if someone can help me I would be very greatful.
Thanks for the great infomation eveyone. I am very new to all of this so my questions are quite basic.
The loan is relatively small as I am buying in a large country town, and my dad has agreed to cover any repayments (if the property is vacant) while I am finishing my last year of university. I currently have a pre-approval so just need to find a property and pass the valuation.
So hypothetically, if I decided to take a risk and not disclose the fact that I am resigning from my job to the bank, how long do I need to wait before the bank can't pull out of the loan. For example, once the property settles I am safe right, regardless of what happens after that?
Cheers.
Thanks Michael! Is is likely that the bank would find out that I’m no longer in full time employment? In other words, how often do they check the loan applicants financial details between the time of pre-approval and settlement? Also, am I obligated to advise the bank that I am no longer employed. As I said before, servicing the loan is no issue, I simply need to get the loan first.
Thanks for the response Johann. Servicing the loan won't be an issue, as my dad is happy to cover this for me. All I am really concerned about is whether the bank is going to ask me to prove that I am still in full-time employment when it comes time to settle on the property.
I hope to buy in the next 2-3 weeks and will also be resigning on November 10. Obviously I will not be in working when the property settles. Will the bank then revoke the approval, or so long as I was in full-time employment at the time of pre-approval will everything go through as normal?
I would be really greatful if someone can explain this to me.
Thanks again!
Thanks for the great info everyone!!
Does anyone know how I would go about getting finance to purchase property in New Zealand? I have noticed that there is lots of positively geared property over there!
I don't plan on doing this until I have a few Aus properties under the belt but would still like to know how it is done. I have ZERO knowledge in relation to this at the moment.
Cheers,
Oz.
Wow! I was wondering the same thing as James Wood! Cheers Jamie!
Does a HECS/FEE-HELP loan have an impact on my borrowing capacity?
Hey,
I am confident have equity in my ip as I bought it well below market value.
I have a very simple question, do I now contact my lender to have the property revalued in order to.determine the available equity or is there some other method?
Also, what does a valuation usually cost?
Can the result be disputed?
Cheers,
Oz.
Thanks Jamie!
Anyone out there ever bought ex-commission homes in large regional towns/cities at auction? If so, was of easier to purchase the property below market value? I am considering ex-commission property in the evo-cities, am I more likely to get a better buy at auction?
Also, does anyone think this evo-cities advertising campaign will have much of am impact on population growth and investment in these areas?
Cheers,
Oz.
Thanks Nathan! I’ll check out his site.
Oz.
Hi,
I noticed you are interested in areas north of Geelong.
Unfortunately I can’t answer your question, but I have recently noticed these areas (searching for cheap property online) and was amazed at how cheap 3 bedroom homes were considering the proximity to Geelong, the bay, and even Melbourne!
I am from Sydney and have never been to these areas but am wondering how they could be so cheap? Do you feel.these areas have solid potential? I am very interested in Norlane.
Cheers,
Oz.
Haha, that might help!
Ideally looking for someone around the Parramatta/Penrith area.
Oz.
Hi All.
I’m very keen to buy my second ip, especially after learning more about using the equity in one ip as the deposit for another!
I didn’t have the best experience with the broker I used for my first purchase. I assume he wasn’t all that interested due to the fact my loan was so small (128k).
Can anyone suggest a decent broker who would be happy to help me out with a similar size loan? Ideally I am looking for someone that can really help me meet my long-term investment goals. I don’t plan on buying 140k properties forever but for now I am sticking with the cheaper properties so my lifestyle is not impacted to a great extent.
If anyone can send some recommendations my way that would be great!
Cheers,
Oz.
