I met an enterprising young man today with his own business whose tax return indicates he earns approx $8000pa. I am sure that he earns far more than this in reality but this is the pickle he finds himself in.
He wants to buy a house but the generic mortgage broker response is that he can not get a lo-doc as he does not have the 20% deposit plus Stamp Duties etc.
Can you clever guys suggest other possible options he can explore? The property is worth about $300k – and 20% is a lot for a 22 year old to have lying around.
Please PM me if you would like me to pass your contact details to him or just post your ideas so we can all learn.
He sounds like a potential wrappee – tell him to get in touch with the Vendor Finance Association (http://www.financewraps.asn.au/ ).
He can get in touch with a wrapper through that organisation….or he could approach Steve McKnight directly
Cheers,
Aceyducey
Does he have someone who can help him out with a personal loan or some equity?
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
There’s not much he can do really. If he hasn’t got much of a deposit, then he won’t be able to get a loan. he will need at least 10% (plus costs) for a low doc loan (with a very high rate). I would suggest vendor finance.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Simon!
I don’t know his full situation but I do think he could get some extra money from a relative or something.
Do any of you guys know much about using an interest bearing deposit IBD as security?
Any other suggestions are appreciated. I can’t see Vendor Finance as an option because they want to build a house on some land they have found.
Cheers,
Greg.There may be an avenue but I would need figures to see if it would work.
Ask him to email or call me if he is interested.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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