I had a forum member ask for my assistance over a similar matter than went wrong.
Girl had a joint loan with ex and did a parental guaratee as well. Property prices dropped, ex did a runner and about 8 years later they are still paying a loan off with the property long ago sold.

Perhaps Charlie. My trail book has perhaps 5% fixed but my drop off rate is very low, perhaps less than 5% drop off each year and that is because they sell.

Lawyer fees would depend on the court, the higher courts cost more and which court you end up in will depend on the size of the dispute generally.

Investing and business is risy chariie. You have to look at industry average drop off rates, the perccaentage of the book on fixed loans etc and have a restrain clause that the seller is prevented from writing loanss to those clients (he might just get one of his/her mates to refinance all)!Any clawbacks you would get the seller to wear.

fudge111 wrote:

So would I be able to use the equity in my parents home (1.2 million) if they gave me permission to help me launch my property investing portfolio?

What options do I have if this is possible?

Thanks everyone,

fudge111

Depends on the situation but you could possibly do this 2 wayas

1. parental security guarantee.
2. parents borrowing and onlending you the money.

2 would be safer for them.

If you went 50/50 you would each have your own expenses and whether the rent would be deductible or not would depend on what you used the place for.

If you rent out your main residence the portion you rent out will be subject to CGT.

Not true blackhotel.

Just get some legal advice on structuring and asset protection before entering any contracts. Especially if big money is involved.

Yez. Buy it in the name where you want the income to lie

Generallynot a good idea to have joint loans if you can avoid it.

Generally ownership determines deductibilitywhere spouses are involved. So X owning with the loan in the name of X and Y would mean X claims all xeductions and gets all income.

Yes guarantees generally count as loans for serviceability purposes.