Hi guys,
I have a weird situation here, hope you can bear with me and offer me any advice.My brother and father own a fast food business together, i work here also but kinda under the table (cash in hand) stuff to help them out etc, so im technically considered unemployed.
Anyway, my father owns another commercial property, which later this year a new lease will kick in for 3 years with a extra 3 year option and it will receive $440 rent per week with all water expenses and gst paid by the pesron renting the property (as agreed), theres also a 2 raise in rent each year.
My father wishes to sell the property to my brother and I for 250k.
My brother has a outstanding personal loan of about 16k, he has maxed out credit cards of about 2k in total, but has a good credit rating, but he has no cash or a deposit to put towards this investment loan.I (as mentioned) am regarded as unemployed, I have $40k deposit to put towards this property and a clean credit record. If also required my fiance can also be put into this loan as she works with a salary of about 50k a year but has some minor blemishes on her credit recod due to unpaid phone bills, but no deposit.
What are our chances of finding a lender that will aprove of our situation? Im pretty sure that the rent coming in on the property can easily pay the loan off, can we use the title as security? Can my brother and I and if my fiance comes into this, do we forfeit our first home owner buyers grant?
I also think a loan of 250k + my deposit wont be sufficient, how much extra will we need for stamp duities, approx lawyer fee’s etc to complete this sale? I think we may also need 20% for a deposit?
Any advice on what we can do etc will be greatly appreciated.
Thanks!Hi Rzech,
It may be possible, but you would need to come up with 30% deposit to get this through a traditional commercial lender at reasonable rates. Possibly you can take out a second mortgage to fund the difference, however the rates will be quite high and you need to be wary of the cost becoming uneconomical. One possible way you could get around this, if your father were to agree, is for him to leave some money in the deal as seller financing to help you come up with a 30% deposit. As long as the income were sufficient to cover your outgoings at a reasonable level, there are a number of lenders who would be willing to fund such a deal. However there are quite a few other factors that would come into play such as where the property is located, the valuation on the property, the type of commercial property and the type of tennant.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044WHY WOULD YOU ADMIT TO COMMITTING TAX FRUAD (AND SUBSEQUENTLY SUGGEST YOUR FAMILY’S BUSINESS IS ALSO COMMITTING FRUAD) IN A PUBLIC ENVIRONMENT??? (I am referring to you getting paid cash-in-hand). I am not naive to think that it doesn’t happen but you certainly wouldn’t public advertise the fact. Honest people end up paying more tax because of people that avoid it (illegally!). So why should we help you???
Cheers
Stu
rzech
100% loan may even be possible dependant on the actual value of the property. You mention the price that you are able to buy the property but not the actual valuation.
A couple of lenders i am aware of will lend against valuation and not purchase price to that maybe possible.
Also why not make the Contract conditional upon the seller repaying your brothers personal loan and credit cards.
Without knowing more details on the property it is difficult to advise further but 75% LVR on a lodoc basis shouldnt be too out of the question if everything else is right.
Richard Taylor
Residential & Commercial Finance Broker
**NODOC loans from 6.89%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Thats an easy one to get funded.
Not saying anymore than that.
No. Really.
Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055
You must be logged in to reply to this topic. If you don't have an account, you can register here.
