澳洲Australia property To buy out or not buy out | Sydney


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


Hi Guys,

Started a new thread for a completly seperate question.

Basic background.

I own a townhouse with a friend (50/50) that we purchased for 375,000 when we were 19 (2006). As we are on different paths (I want to keep investing and he want to buy a PPOR and be done) it gets very messy when I need to refinance for another purchase and is quite a messy setup.

We are close friends and was thinking of offering him a payout for his half.
Is this a smooth process? Estimated value would be 490,000. Our lown was 100% finance so he owes 180k and i owe 215k (as i borrowed for second purchase). Would it be my best option to buy him out or just stay as is?

Cheers  

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Hey,

I don't think it would be too much hassle to buy out your friend, but I've personally never gone through that. I would speak to a mortgage broker and solicitor to see what they say.

I can't see there being a problem with finance, as there is plenty of equity and I assume neutral or positive cashflow after holding it for 5+ years?

The bigger question for you would be how do you think this property will perform in the future? Do you expect the same kind of growth or better?

By my calculations, you have gained an average 6% per year in value (not compounding interest) which is not bad but not great either.

It may be easier to just sell so you both realise the gain and then you can re-invest your profit into another property with good potential.

Just my thoughts.  

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Thanks Investor,

I already used some equity from it to buy IP2 but it is still negative geared
(-450p/m)

The only issue i have with selling is that its in Melbournes sliding market (Maidstone)  

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mirrors27 said: ↑
Hi Guys,

Started a new thread for a completly seperate question.

Basic background.

I own a townhouse with a friend (50/50) that we purchased for 375,000 when we were 19 (2006). As we are on different paths (I want to keep investing and he want to buy a PPOR and be done) it gets very messy when I need to refinance for another purchase and is quite a messy setup.

We are close friends and was thinking of offering him a payout for his half.
Is this a smooth process? Estimated value would be 490,000. Our lown was 100% finance so he owes 180k and i owe 215k (as i borrowed for second purchase). Would it be my best option to buy him out or just stay as is?

CheersClick to expand...
Guess it always comes back too one item,your idea of value and the other persons name on the deeds,and their idea as long as you can balance that item,then the rest is just paperwork,would it make any difference maybe it will as control is everything..  

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mirrors27 said: ↑
Thanks Investor,

I already used some equity from it to buy IP2 but it is still negative geared
(-450p/m)

The only issue i have with selling is that its in Melbournes sliding market (Maidstone)Click to expand...
so would your friend be willing to accept your 'low' offer based on a sliding market?  

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I have also thought about this Ed but want to make sure whatever happens that it works out OK for both of us. Thats why im just sussing out my options.  

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mirrors27 said: ↑
I have also thought about this Ed but want to make sure whatever happens that it works out OK for both of us. Thats why im just sussing out my options.Click to expand...
it's a difficult situation and only you know the relationship you have with your friend and how reasonable they are, how desperately they need to sell and the intersection of the two. this sort of stuff can make or break friendships.

your estimate is 490k. what if his is 540k and the market value is 450k? if you pay him out at 490k, let alone 450k he will always feel ripped off.

perhaps you could get a proper valuation and then discuss? transact on this figure. you could put it on the market with no intention of selling but fishing out prices? base your offer to him on what the market says?

this is not easy.  

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