Hi smart investor people!! Urgent advice needed, these forums popped into my mind as the place to come!!
I have a townhouse that I owe $185K on and is conservatively valued at $415K – so let's say I've got $230K of equity in it. It's rented out but still falls under the 6 year CGT exempt rule for about another year (that might be relevant??).
I live at home, have no car no credit card no personal loans no dependants just a HECS/HELP debt, about $10K. I recently started a job as a temp but literally sat down with the HR manager today: they are keeping me on as temp until Christmas after which I will become permanent, and the money will improve considerably as I move into the Management role they're creating for me. Even under the current arrangement, I could put $1,900 to the side each month for a loan.
Here's the kicker: I've found a property as rare as HENS' TEETH and I want to jump on it RIGHT NOW! Or I'll have nightmares for the rest of my life.
As an opportunity, I love it. It's $290K- my equity almost covers it (but I'm still a bit confused about how equity works). It's also rented out and I'd keep the tenants in there!What do I do? How do I nab this? I want to jump at this chance but not rue the day I did it for being foolish. I know I can afford it – who can I approach to give me the money?? The RE agent scared me, he's a mortgage broker too and when I told him I'm not a permanent employee he quickly breathed – "I"ll get you the money"… I don't really want to go running off to him without any knowledge about my options!
Thank you for any help, really appreciate it.
Sheran.
PS – is a Letter of Intent legally binding??
Hi, easy. If the broker can get you a standard bank loan, it means you're OK. Say total value = 700000 @ 70%LVR you have $490000 loans.
Should be affordable.
KY
Hi Sheran,
You make it sound like the property market is going to close down in a week and you have to grab the last available good deal outthere .
First of all impulse buying and rush purchases never ended up successfully, atleast I never heard about it.
Secondly, there are sooooo many fantastic deals out there, believe me, you will not miss out on anything.
Look for some good advice and some education on property strategies, get market ready and then look for the good deals.
You have a good deal of HECS, why do you want cashflow producing property and not quick money. Or even aa deal that can create both.If you want to talk about possibilities, please contcact me and I will help you to get the right info.
Plase contact me: [email protected]
Hi sheranj, I hope you know enough to shy away from people who offer get rich quick solutions.
Stick to your guns, you have already done very very well. The HECS debt is not a lot and will get paid quite quickly.
KY
Hi Sheran
I would be wary if the agent selling the property wants to organise your finance as he acting for the vendor certainly will have any interest in the matter and it wont be yours.
Just because you are only part time is not really issue with certain lenders given the LVR however it is how it is structured that is probably more important.
I would be seeking advice of a mortgage broker who is going to work for you and not for the vendor.
Richard Taylor | Australia's leading private lender
Thanks to you all for the good advice, I appreciate it. Will try to temper my enthusiasm for this particular property and if I can't go ahead with a great deal on the finance as well – c'est la vie I guess!
x Sheran
As an opportunity, I love it. It's $290K- my equity almost covers it (but I'm still a bit confused about how equity works). It's also rented out and I'd keep the tenants in there!
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