Potential credit bottlenecks that I need to be aware of as a guarantor
Posted: Mon May 06, 2019 11:56 am
Hi, we want to buy an investment property for our granddaughter to help her gain some independence and a good credit rating. She works as a hairdresser and earns roughly $50,000 a year and lives with us rent free. She has no debt except for her credit cards with a $3,000 limit. She doesn’t have a deposit, but we can guarantee her investment. My wife and I are both self-funded retirees and we own our house outright last valued at $1.2 million. The property I’m interested in is a unit in Sydney about to come on the market for 650k. It already has a tenant paying 700/week. Based on the information I’ve provided what are some potential credit bottlenecks that I need to be aware of?