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  • Profile photo of jcls79jcls79
    Member
    @jcls79
    Join Date: 2004
    Post Count: 88
    February 1, 2005 - 7:20 am

    After scratching my head for a few days, I would like some opinions on this one:

    Maitland warehouse: 150K
    only got 15K as deposits

    Option 1:
    Take out line of credit against my folk’s house as security and being charged 6.75% fixed for interest only?

    Option 2:
    Take out loan for 70% LVR for property value and source private lenders for balance, however this approach will eat into the margin quite significantly [angry2] (not preferred option)..

    Any ideas?

    Cheers
    john

    Want to join financial independence before 31 years old, currently 25

    Profile photo of Fast LaneFast Lane
    Member
    @fast-lane
    Join Date: 2004
    Post Count: 527
    February 2, 2005 - 1:50 pm

    You could always ask the vendor to leave in some finance and get a mortgage with him drawn up separetely. However, if this arrangement erodes your returns too much I’d be questioning the investment.

    If there’s a will, there’s a way!

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