PaulX83Member@paulx83Join Date: 2014Post Count: 2
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.Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
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.
JamiemattstaParticipant@mattstaJoin Date: 2011Post Count: 604
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?TerrywParticipant@terrywJoin Date: 2001Post Count: 16,190Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,018
Alternatively if one of your family members is prepared to provide a guarantee a 100% + loan is possible.
Second option a Vendor Finance deal.
Yours in FinanceColin RiceParticipant@fmsJoin Date: 2011Post Count: 338
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.PaulX83Member@paulx83Join Date: 2014Post Count: 2
Many thanks for your advice gentlemen. I’ll start looking into those options.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,018
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.
Yours in Finance