Our son is keen to know whether he can buy again.
He currently has a bank loan $350K for a house value $600K. He has lived there for nearly twelve months, and his obligation regarding transfer duty is fulfilled.
We had a bad time of getting the loan, and used family money to settle. Then his bank lent him $350K to part repay the family loan.
At the time the bank accepted that we treat this residual debt owed to us as a "gift" so the bank would leave it out of the equation.
He is keen to increase his borrowing with his bank (or move to a different bank) to pay out the family loan, but also keen to move back home, rent out the house and maybe buy something that he can live in and renovate slowly. That may be a unit if he cannot afford a cheapie house.
So... what could he borrow?
Let's say he moves back home while he looks for his next project and rents out his house for $550 per week.
He would get good depreciation due to having gutted the house, new kitchen, new bathroom. So he would get a depreciation report.
He earns $65K per annum.
So, my calculation is gross income plus rent come to approx $1800 income per week.
Bank loan currently $350K.
Family loan currently $170K.
He is currently paying both the bank and us with no problems.
1. Could he increase his bank loan (NAB) or refinance with another bank to pay out NAB and repay the family loan?
2. If he rents out his house, he would want all loans to be tax deductible. Is this possible?
3. How much extra could he borrow? Could he borrow enough to buy a unit for $350K?
Any brokers who can help?
He currently has a bank loan $350K for a house value $600K. He has lived there for nearly twelve months, and his obligation regarding transfer duty is fulfilled.
We had a bad time of getting the loan, and used family money to settle. Then his bank lent him $350K to part repay the family loan.
At the time the bank accepted that we treat this residual debt owed to us as a "gift" so the bank would leave it out of the equation.
He is keen to increase his borrowing with his bank (or move to a different bank) to pay out the family loan, but also keen to move back home, rent out the house and maybe buy something that he can live in and renovate slowly. That may be a unit if he cannot afford a cheapie house.
So... what could he borrow?
Let's say he moves back home while he looks for his next project and rents out his house for $550 per week.
He would get good depreciation due to having gutted the house, new kitchen, new bathroom. So he would get a depreciation report.
He earns $65K per annum.
So, my calculation is gross income plus rent come to approx $1800 income per week.
Bank loan currently $350K.
Family loan currently $170K.
He is currently paying both the bank and us with no problems.
1. Could he increase his bank loan (NAB) or refinance with another bank to pay out NAB and repay the family loan?
2. If he rents out his house, he would want all loans to be tax deductible. Is this possible?
3. How much extra could he borrow? Could he borrow enough to buy a unit for $350K?
Any brokers who can help?
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