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From: Mike .
FINANCE
From: Jeff Lindhorst
Date: 2/16/00
Time: 8:31:40 AM
I read Jan's books and was inspired to get into investment property. My problem is getting the CBA to loan me 100% of the money for the properties as described in the Building Wealth Through Property Investment book.
I am investing on behalf of my son who currently has a share and managed fund portfolio worth about $900,000. He is 19, lives at home paying some rent, and is currently studying. His investments return him an income of about $40,000pa. He has no commitments beside a $1000 Visa card.
We have made an offer on two houses here in Perth after a couple of months of looking. The first house was purchased for $225K paying 10% down. The second is under offer at $200K, but the bank wants 20% down. My view is that they should be able to take some security against his equity portfolio, but they are not amenable to that. I believe instead of tying up the 20% ($40K) in the second house he can use this money on the market to generate medium term gains of 10-20%. The rental on the $225K property is $225pw and I expect to get $210pw on the $200K property.
Any suggestions how we can borrow the entire amount?? where has my logic failed me regarding getting the 100% loan? This has been a very frustrating experience for me having the bank wanting to tie up so much of his cash when he has such a large equity base.
Cheers Jeff
FINANCE
From: Jeff Lindhorst
Date: 2/16/00
Time: 8:31:40 AM
I read Jan's books and was inspired to get into investment property. My problem is getting the CBA to loan me 100% of the money for the properties as described in the Building Wealth Through Property Investment book.
I am investing on behalf of my son who currently has a share and managed fund portfolio worth about $900,000. He is 19, lives at home paying some rent, and is currently studying. His investments return him an income of about $40,000pa. He has no commitments beside a $1000 Visa card.
We have made an offer on two houses here in Perth after a couple of months of looking. The first house was purchased for $225K paying 10% down. The second is under offer at $200K, but the bank wants 20% down. My view is that they should be able to take some security against his equity portfolio, but they are not amenable to that. I believe instead of tying up the 20% ($40K) in the second house he can use this money on the market to generate medium term gains of 10-20%. The rental on the $225K property is $225pw and I expect to get $210pw on the $200K property.
Any suggestions how we can borrow the entire amount?? where has my logic failed me regarding getting the 100% loan? This has been a very frustrating experience for me having the bank wanting to tie up so much of his cash when he has such a large equity base.
Cheers Jeff
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