(Think I posted this in the wrong forum before!)
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.
Visit a mortgage broker – there are even some who post on this forum. They will be able to advise if you would qualify for a loan either based on income, ability to save (track record) or by using equity/rent returns.
Hi Sheran
I answered your question on the other forum but in essence this is what i posted.
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
Thank you both – I have actually consulted the same mortgage broker who set up the finance for my first property and he's told me I can't do this since I don't have 3 months savings history as I only recently returned from some travelling and have just started working again two weeks ago. I just don't want to take no for an answer as I believe this deal is perfectly affordable under the circumstances — would having a guarantor help allay any concerns though?
Look i hate to say he or she is totally wrong and with the equity you have there are a couple of lenders who would do the deal.
Genuine savings is not required when you have that amount of equity and your employment also should not be a issue.
Richard Taylor | Australia's leading private lender
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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