eskiParticipant@eskiJoin Date: 2004Post Count: 9
I’m looking at buying a property from the family and putting up some cottages for an airbnb, online calcs say I have borrowing capacity but an initial chat with a finance adviser seems to think it will be difficult, details:
My income: ~$7600 fortnight gross
Both loans below with same FI – which I have been told was a bad move..
Current home loan: $790k
Home value: $780k (not best buy I just fell in love with it and had to have it)
Payments: ~$3400 month
Investment property loan: $210k
Payments ~$1200 month
New property Plan
Borrow initial: $300k
Give $200k to family member and use savings / 100k to build simple cottages
Then once up and running, refinance to give family member remaining $250k
It has had rental income close to $300/wk
I’m planning on putting 2 cottages on it which will rent for around $200 a night and should get consistent rent for the summer months.
I want to keep the financing simple and hopefully use this as a leg out of corp life.
Also do you advise to use mortgage brokers or lend directly? An online finance writer (guess who) seems to advise better to go directly though a FI like ubank.
Thanks in advance for any advice provided – Go Cats!!!!TerrywParticipant@terrywJoin Date: 2001Post Count: 16,190
This won’t be welcome under residential lending.
Most lenders will not lend for more than 2 on title. Some will, but if they think you will be running a short term rental business they will not include potential rent.
You will need to consult a broker.
Will you be buying for $200k or $300k or $450k?
better speak to a lawyer too, especially if you are planning on buying for less than market value.