Hey guys thanks for reading!
I’m 22 and am very lucky to have inherited a house with no debt attached. Although the house is half mine and half my brother’s and we are both keen on investing together…. Taking a loan against the house etc..
I’m also a qualified carpenter which makes me think I should use this to my advantage in terms of renovating or developing ?
So far we have discussed several different options but still Have no idea which is the safest and best way of going about it.
Any advice you guys have would be greatly appreciated.
Things you should know..
– House value $350,000 no debt attached
– no children
– I’m a qualified carpenter ( perhaps build own development??)
– we live together (in the inherited house)but would like go separate ways in the next few years but continue investing together.Thanks for your help!
Renovating is a great idea for obvious reasons and it will help create CG and further equity but what is the long term plan? Are you looking to convert the property into an investment?
Are you looking to draw upon the equity against the property to fund for further purchases?
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Sounds like you're in a great position early on.
Looking at your situation:
- Access to significant amount of equity
- Don't have current mortgage/rent repayments
- Qualifications related to renovating
Accessing the equity on the property for deposit funds (and possibly renovation funds) means you do have the potential for your brother and yourself to purchase several properties (seperately or together) and have funds to renovate if you want to go down this pathway. This is subject to serviceability (income, liabilities etc), however if you're currently living in an unencumbered property that is helpful with this respect.
You have all the groundwork in place to start a substantial portfolio, I would suggest increasing your knowledge in property investment, read, go to property investor meet ups if you can. The knowledge out there is immense. Also build yourself a strong team of professionals (accountant, solicitor/conveyancer, broker, Property managers etc) who can help you achieve your goals and provide greater options.
What State do you live in BTW?
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Yeah definitely looking to draw upon the equity in the current house. As for a long term plan we just want to have a few properties weather we develop them or not it doesn’t matter. Just want to have secure investments really.
What would your advice be on what and how to borrow money for these situations?
I’m in Victoria by the way
Thanks for the reply
I’m from Melbourne’s wet south east!
Ahhh i cannot resist. "help! want to become a property but don't know where to start?"
Well! In order to become a property, you would first need to be reincarnated as a building product such as bricks.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Ahhh i cannot resist. "help! want to become a property 'tycoon' but don't know where to start?"
1. Make sure the properties are standalone
2. Different lenders use different valuers so the equity available may be different from lender to lender. Most lenders now days offer free upfront vals
3. If you are planning to develop the properties be careful of selection of lender as it multiple dwellings and construction policies differ from lender to lender.
4. Keep the loans are variable if you are developing to give yourself flexibilty in case you get a crappy val upon completion
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
You must be logged in to reply to this topic. If you don't have an account, you can register here.
