澳洲Australia property My situation, Help Needed! | Sydney


在澳大利亚 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 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


Hi all,

Ok so here is where im at...

My girlfriend and I have $300,000 in cash. We have no investment property's and we live in a relative's apartment with her. We dont pay her rent, we just cover the bills.

We are looking into investing the money in property.

Now I have just been told that if we buy investment properties in joint names that the banks are abit tighter when lending money for future IP's ???

Its not an option to have the investment properties only put in one name. Would a trust help get around this or ... ?

Apart from that I have no idea where to begin!

Anyone care to share what they would do if they were in our position with that amount of money...

PS we got the money from inheritance and savings ect....

Cheers  

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Hi BAJ

Missing a bunch of information : )

In general, I prefer my clients have SOLE borrowings and titles where the sole income supports that.

It means in some instances there is more flexibility in the future with lender and or mortgage insurance exposure.

A lot really comes down to what other resources you have other than that great wad of cash

eg

incomes (and other liabilitie)
risk tolerance
Investment strategy
surety of purpose ( know what you want and why)

etc

obviously you are doing some exploring thats why you are ere and thats great

In general, a vanilla approach would be ti buy a property each ( if possible) with 20 % or less as deposit and park the balance of cash in offset.

ta
rolf  

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I'm assuming only one of you guys got the large inheritance.

Marry her before you start putting properties with your money (if this is the case) in joint or her name... because you never know...

If its your money just buy in your name.

If only one of you have a high income and the other has all the inheritance money, sit tight for now.

First educate yourself about property before buying 10 wrong properties in the wrong structure for more than they are worth... resulting in lost opportunity and not maximising the potential of that money.


Need more details obviously...  

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The "girlfriend" description is a little vague.

This can apply to someone you met a few weeks ago to someone you intend to spend the rest of your life with.

Either way, it may be best to keep your finances separate for now as it is hard to unscramble eggs.

If the $300K is divided fairly evenly between you, it may be possible for you to get an IP each. If it basically was earned or inherited by one of you, then maybe that is the name the IP should be in.

If you want to invest together, either marry (if that is your intention) or get a formal financial agreement in place first.
Marg  

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Thanks for the quick replies.

Sorry ill give abit more information.

My girlfriend and I have been together for almost 2 years and have lived together most of that time. We have spoke of marriage and we do plan on getting married in the not so distant future.

Anyhow the majority of that money is my girlfriends inheritance. But I have contributed enough to it to afford my own investment property anyhow.

I spoke to her after reading some of these posts and I think us buying an investment property each in our own name would be easier?

The other negative in this scenario is my girlfriend studies full time at uni and doesnt earn much income, whereas I am only a 3rd year electrical apprentice. My income is $520 net per week. Not much either. Though at this stage we have no liabilities, except for a car?

As to what I want to achieve from property investing... well to grow a solid property portfolio, and someday be able to leave my job and live off my propertys as I continue to expand? - I guess thats a pretty common response to that question..  

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BigAJ you should speak to a broker about you and your girlfriend's situation so you can estimate what you can or can't do from this point forward.  

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And you have to speak to a broker to make sure you buy right properties (positive cashflow only in your situation) - if you buy one heavily neg geared you won't be able to buy more unless you pay cash.

Get married quick though - nice wedding present :p  

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One reason it is preferred to buy in sole names is that, when in joint names, the ENTIRE debt is considered as being owed by both parties - just in case one party bails or cannot repay.

So, if you borrow $500,000 - then you are both considered as owing $500,000 each rather than $250,000 each.

If you've been living together for 2 years then you'd be considered defacto anyhow, so any separation rules relating to a married couple would also apply to yourselves ... however ... even tho no one ever plans on splitting up, it might be good, when it comes to such a large amount, that you have it documented and signed off what each of you bought into the relationship (ie, her inheritance, your financial lump sum), and part of the argeement saying that if you split up, you take that initial amount back out each and whatever is left is then split 50/50.

Having both hubby and I went thru nasty divorces (before we met), so we were more than happy to have such a document signed up - even tho we didn't have a huge amount of assets, they were the difference between each being able to buy our own house if things went wrong. 12 years, many houses and a child later, the document is irrelevant.  

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Speak to a lawyer first about some asset protection strategies and some tax strategies. I can think of a few.  

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Travel around and do whatever you like until you have just enough for a deposit and then start working again. Or buy property now . . ;)

On a serious note some would take the mini retirement. I'd seriously consider it. But then again, it's probably only because we have a decent portfolio working for us already.  

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Property Investment

I think Perth is definitely worth considering as a good area to invest in.  

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investor2009 said: ↑
Travel around and do whatever you like until you have just enough for a deposit and then start working again. Or buy property now . . ;)

On a serious note some would take the mini retirement. I'd seriously consider it. But then again, it's probably only because we have a decent portfolio working for us already.Click to expand...
Sure do agree with that and with that chunk of change you could easily have both :)  

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