Good evening all.
I’m endeavouring to educate myself a little further in finance with the aim of purchasing a rental property for rental income. I’m hoping some of you can steer me in the right direction with which financial approach to take.
I currently have around $6k in savings and a personal loan through family of around $24k. Of which I pay $600 monthly toward. My question is, how would I best go about simultaneously applying for a property loan and having my current personal loan consolidated into that property loan. Ideally I would prefer to do this and be paying that $600 toward a property loan rather than still having two separate loans to pay.
many thanks for any advice.
Hi there
welcome aboard.
The short answer is that it's not possible.
To fund a property purchase you'll need to contribute at least a 5% deposit and enough funds to cover costs. If it goes up in value in the future you might be able to access equity and pay out your personal loan – that could take a while though.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
With that personal loan of $24k, you're probably best to pay that off as soon as possible. Is it bad debt? or did you get that personal loan so that you could buy property with the 24k?
You can only consolidate a loan if you have equity.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Alternatively if one of your family members is prepared to provide a guarantee a 100% + loan is possible.
Second option a Vendor Finance deal.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Ask one of the brokers on here to run some numbers to see if you can afford to service both debts. It would take 5 minutes to determine and I'm sure some words of wisdom would also be provided along with the outcome.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Many thanks for your advice gentlemen. I’ll start looking into those options.
We are doing a deal at the moment for a forum member in a similar boat.
The young client has good income but not much in the way of deposit.
We have sourced the property and investor to buy it and the on sell it to our client thru Vendor Terms.
It is a win win both parties.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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