Hi all,
Back in late 2009 I put a 10% deposit of $37k for an off-the-plan purchase of a $370k 1 bedroom apartment in Hamilton, Brisbane. The apartment was intended to be an IP and rented out once built to assist with loan repayments.
Since 2009 my financial situation has drastically changed and I have had a significant reduction in income. I have also entered into a debt agreement to manage my financial affairs meaning that my credit history is poor.
Settlement on the property is coming up in September and I have had trouble securing finance due to my ability to service a $370k loan and my bad credit rating.
Fortunately my father has been very supportive and is willing to help me with my situation and can provide financial assistance if need be. I would like to keep the property if possible (for the capital gains) but realistically, it looks difficult.
Put simply - What options do I have and what would be the best course of action?
From my research I have concluded that I have three options:
Any further information/suggestions would be greatly appreciated. If any further information is required please let me know.
Thanks again,
JE
Back in late 2009 I put a 10% deposit of $37k for an off-the-plan purchase of a $370k 1 bedroom apartment in Hamilton, Brisbane. The apartment was intended to be an IP and rented out once built to assist with loan repayments.
Since 2009 my financial situation has drastically changed and I have had a significant reduction in income. I have also entered into a debt agreement to manage my financial affairs meaning that my credit history is poor.
Settlement on the property is coming up in September and I have had trouble securing finance due to my ability to service a $370k loan and my bad credit rating.
Fortunately my father has been very supportive and is willing to help me with my situation and can provide financial assistance if need be. I would like to keep the property if possible (for the capital gains) but realistically, it looks difficult.
Put simply - What options do I have and what would be the best course of action?
From my research I have concluded that I have three options:
- Option 1 - Father to act as guarantor on the loan and also supplement initial deposit with another $30k, reducing my borrowing value to $303k. (Will this be enough?)
- Option 2 - Flip/sell the apartment to my father and put the loan under his name and contribute to the payment of the loan. (Through a formal contract)
- Option 3 - Try 'flip' the property by finding a buyer before settlement is due. (Hopefully not make a loss)
Any further information/suggestions would be greatly appreciated. If any further information is required please let me know.
Thanks again,
JE