Hi!
My fiance and I are planning to buy a place for investment. We have few savings but that’s for our marriage, so we don’t want to use it for investment purposes. My fiance owns a home in partnership with her brother and house has still got owing but has significant amount of equity. We would like to use that equity to use a deposit and also help us pay stamp duty to buy a house. New house will be under my name and my fiance's name and her brother will not be involved. We both are in good income to service the debt. Please advise, how can we go about this situation?
Regards,
Jenny
Planning to buy a place for investment
- Norman Isaac
- Mortgage Specialist
- Posts: 60
- Joined: Tue Aug 28, 2012 11:34 am
- Location: Sydney, Australia
- Contact:
Re: Planning to buy a place for investment
Hi Jenny,
Thank you for your forum post.
Your fiance and her brother would need to borrow together against their property in order to absorb the equity required for you to invest. Given that these new borrowings are for your purpose, it would be best to have this split into a separate loan. That way you guys can keep track of the interest you are being charged when it comes to tax time.
Once they have completed this increase, you and your fiance can then apply for your own investment loan (this process can be started before the increase is advanced).
One thing to watch out for is to make sure that your incomes, including any future rent is enough to cover the new mortgage along with the existing mortgage plus any other outgoings you may have. It would be best that you consult someone first to make sure your borrowing power stacks up before making a commitment. It is a good idea to apply for a pre approval first so you know how much you can spend on an investment property.
I hope this answers your question and please fee free to contact me should you need any further assistance.
Thank you for your forum post.
Your fiance and her brother would need to borrow together against their property in order to absorb the equity required for you to invest. Given that these new borrowings are for your purpose, it would be best to have this split into a separate loan. That way you guys can keep track of the interest you are being charged when it comes to tax time.
Once they have completed this increase, you and your fiance can then apply for your own investment loan (this process can be started before the increase is advanced).
One thing to watch out for is to make sure that your incomes, including any future rent is enough to cover the new mortgage along with the existing mortgage plus any other outgoings you may have. It would be best that you consult someone first to make sure your borrowing power stacks up before making a commitment. It is a good idea to apply for a pre approval first so you know how much you can spend on an investment property.
I hope this answers your question and please fee free to contact me should you need any further assistance.
Norman Isaac
Senior Mortgage Broker
P | 1300 889 743 E | norman@homeloanexperts.com.au
Home Loan Experts
Senior Mortgage Broker
P | 1300 889 743 E | norman@homeloanexperts.com.au
Home Loan Experts