help getting started

me: 36, disability pension for last 2 years (approx 20k pa not inc rent assistance) due to heart failure/surgery, reduced capacity to work but prob no significant impact on life expectancy. been renting until recently 300/week, now 200/week. 6000 max (bal 5k) 60 month interest free ge mastercard, 150/month. same sex partner of 8 years, 25, currently on austudy. townsville nth qld.
my parents (divorced).
dad: 65 retired, owns home valued approx 300k, 809sqm block (possible battle-axe). very risk adverse, exposure is not an option. cashed in his 170k super as believed having it in his bank account would be safer should we experience round 2 GFC! Receives part pension. no debt. would consider gifting me half the block his house is on if it didn?t cost him anything/affect his pension.
mum: remarried, 60 working f/t approx 75k pa gross. her husband owns their house, should he pass away first she has lifetime tenancy but the house will be passed onto his son. he also has an investment house, at the time of purchase about 10 years ago, he was self employed so mum signed as guarantor. besides this she is debt free. mum would consider an arrangement where we purchase a property together, using her income to help show servicability.
my aim is to purchase a property, build equity as quickly as possible ? then reconsider options re borrowing against equity to purchase investment property, selling for profit etc. I initially thought along the lines of building behind dad?s house (dad signing house to me, him getting granny flat right) but borrowing against that equity would expose him to risk. Any alternative suggestions?
Another option i?ve thought of is for mum and i to combine our borrowing power and purchase something as joint tenants. I thought there could be tax advantages for her to do so. Perhaps a property needing cosmetic improvements for a profitable quick resale. Although if we were to buy new/build I think we would be eligible for FHOG too. Also I do have a friend who will sell me a 2br queenslander cottage (which has heaps of character, 3m ceilings, exposed timber frame, wood panel walls & ceiling, very steep/high roof), which he had moved onto his grandmother?s double block a few years ago but done nothing with since then. I could buy it for 10k, relocate 15, rough estimate for appropriate reno 50-70k (inc. new kitchen, bathroom refresh, roof by roofer friends, professional floor polish, paint ourselves/help from painter mate, deck), suitable block close to cbd approx 150k. say 270K cost should value at approx 350-370k. but i don?t see borrowing to relocate/renovate being an option, just thought i should mention it.
Nearly forgot to mention, if my mum and i had a mortgage in both our names, with a linked offset account ? my dad would probably be comfortable with putting his 170k in the offset facility, and have us pay his current interest earned which is approx 3%!!
Any suggestions would be most appreciated as to how I can work some magic and get started making my fortune (i?d settle for just paying off my own mortgage instead of someone else?s even). Similarly, any reasoned advice suggesting I am off with the fairies will also be appreciated and shall not offend.
If you?ve read this far, I am most grateful. cheers.
 
It is too hard.

Most lenders preclude centrelink as sole income these days.

And your schemes with parents, well, they might work in theory, but in practice you would be better off focussing on generating an income, and then hitting mum and dad up for a deposit, or JV etc.
 
By you trying to make a fortune you are potentially exposing your parents to great risks, effecting their pensions and complicating things to a large degree.

Get some legal advice about the consequences before doing anything.
 
me: 36, disability pension for last 2 years (approx 20k pa not inc rent assistance) due to heart failure/surgery, reduced capacity to work but prob no significant impact on life expectancy.

mum would consider an arrangement where we purchase a property together, using her income to help show servicability.

Another option i?ve thought of is for mum and i to combine our borrowing power and purchase something as joint tenants. I thought there could be tax advantages for her to do so. Perhaps a property needing cosmetic improvements for a profitable quick resale. Although if we were to buy new/build I think we would be eligible for FHOG too.

Any suggestions would be most appreciated as to how I can work some magic and get started making my fortune (i?d settle for just paying off my own mortgage instead of someone else?s even). Similarly, any reasoned advice suggesting I am off with the fairies will also be appreciated and shall not offend.
.

Hi Deejleej, imho, take it slowly. Don't think about 'working magic'; think about putting a roof over your and your partner's head. Perhaps you could jointly buy a property with your mother. You and your partner could live in it and pay her half the market rental (or free if she offers). Does your partner work? What about buying a property with your partner?

Who would do the renovating if you bought something to fix up? The meds are pretty good for heart failure these days, but you should still avoid stress. In my experience, renovating and buying and selling ppties can be stressful. My mother was diagnosed with heart failure nearly 30 years ago. At the time, with the medication available, she was given only five years to live. She is now 80 and still around. You have a long life ahead of you, but you still need to take care.
 
How 'reduced' is your capacity to work? Surely you could earn more than $400 in an easy part time job? What is your profession?

No mention of deposit.

Involving mum and dad is messy, as is buying your mates house etc. Best you get on your own 2 feet and go it alone. Even if you did start out with the folks, its not going to be an easy road to get them out of the web.

Also, I highly doubt dad is going to let you have his $170k in his ex-wife's off-set account as she will have access to it.

I think you need to reassess and clear everything in your post above out of you mind and spend 12mths:

* Getting a decent income above Centerlink.
* Saving
* Researching
* Saving



pinkboy
 
Firstly, I don't know anything about anything. So don't believe anything I say.
me: 36, disability pension for last 2 years (approx 20k pa not inc rent assistance) due to heart failure/surgery, reduced capacity to work but prob no significant impact on life expectancy. been renting until recently 300/week, now 200/week. 6000 max (bal 5k) 60 month interest free ge mastercard, 150/month.

Pay this off. The fees are ridiculous.

same sex partner of 8 years, 25, currently on austudy. townsville nth qld.

Do you live together? is $200 your share of the rent or the total amount?

dad: 65 retired, owns home valued approx 300k, 809sqm block (possible battle-axe). very risk adverse, exposure is not an option. cashed in his 170k super as believed having it in his bank account would be safer should we experience round 2 GFC! Receives part pension. no debt. would consider gifting me half the block his house is on if it didn?t cost him anything/affect his pension.

If he's that risk averse, there's nothing you can or should do to change his mind. Gifting you money or land will affect pension. An equity guarantee won't.

mum: remarried, 60 working f/t approx 75k pa gross. her husband owns their house, should he pass away first she has lifetime tenancy but the house will be passed onto his son. he also has an investment house, at the time of purchase about 10 years ago, he was self employed so mum signed as guarantor. besides this she is debt free. mum would consider an arrangement where we purchase a property together, using her income to help show servicability.

It's risky enough tying you finances up with anyone individual. Getting your mum involved automatically involves her husband. I wouldn't want that.

(Also, you may be mistaken or misinformed about your mum's entitlements if her husband was to pass away.)

my aim is to purchase a property, build equity as quickly as possible ? then reconsider options re borrowing against equity to purchase investment property, selling for profit etc. I initially thought along the lines of building behind dad?s house (dad signing house to me, him getting granny flat right) but borrowing against that equity would expose him to risk. Any alternative suggestions?

Your best option is to buy established. You can't afford the holding costs (paying interest on the progress payments) while your property is being built.

Any sort of gifting of land or cash from Dad will affect his pension.

An equity guarantee would technicaly expose your Dad to risk, but far less than any other option.

Your Mum or stepdad could also provide an equity guarantee if your dad is against the idea.

Another option i?ve thought of is for mum and i to combine our borrowing power and purchase something as joint tenants. I thought there could be tax advantages for her to do so.

This involves your stepdad and is therefore a bad idea.

I thought there could be tax advantages for her to do so. Perhaps a property needing cosmetic improvements for a profitable quick resale. Although if we were to buy new/build I think we would be eligible for FHOG too.

Possible tax benefit to her, but probs not. I also reckon you'd have a hard time getting FHOG for mum. Either of her husbands properties could have stuffed that.

Also I do have a friend who will sell me a 2br queenslander cottage (which has heaps of character, 3m ceilings, exposed timber frame, wood panel walls & ceiling, very steep/high roof), which he had moved onto his grandmother?s double block a few years ago but done nothing with since then. I could buy it for 10k, relocate 15, rough estimate for appropriate reno 50-70k (inc. new kitchen, bathroom refresh, roof by roofer friends, professional floor polish, paint ourselves/help from painter mate, deck), suitable block close to cbd approx 150k. say 270K cost should value at approx 350-370k. but i don?t see borrowing to relocate/renovate being an option, just thought i should mention it.

Correct you'd have to pay cash for this.

Nearly forgot to mention, if my mum and i had a mortgage in both our names, with a linked offset account ? my dad would probably be comfortable with putting his 170k in the offset facility, and have us pay his current interest earned which is approx 3%!!

This would have tax and pension implications for all involved.

Any suggestions would be most appreciated as to how I can work some magic and get started making my fortune (i?d settle for just paying off my own mortgage instead of someone else?s even). Similarly, any reasoned advice suggesting I am off with the fairies will also be appreciated and shall not offend.
If you?ve read this far, I am most grateful. cheers.

If I were you, I'd aim to;
  • find part time work to establish serviceability (and save deposit, fees etc)
  • while working for a few months, research potential bargains, growth areas, cashflow positive properties, finance options, etc.
  • buy an established property
  • (using an equity guarantee)
  • do everything you can to pay down the loan to remove the guarantee
  • profit

Hope this helps.
 
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