How old is too old?

From: J Parker

I have some friends who are keen to get into property investing, but they are both nearing 60 and considering retiring in the next three years. They had an investment unit years ago, which they have subsequently sold, and now retain their money in super and managed funds. Their home is debt free and worth a conservative $800K.

They want to buy a couple of places, sink some large deposits into them and pay down a lot of debt on them whilst still working. They wish to be making an income stream from them by the time they retire. Currently their managed funds are losing them money and their super is untouchable.

My question, on their behalf, is are they too old? What are their chances of getting a loan and, if they can, what options would be best for them? I would presume that they would be better off looking for something with a good rental return, rather than going for cap growth.
Any ideas appreciated.
Cheers, Jacque :)
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Reply: 1
From: Jakk Bass - The SLUM LORD

An interesting fact....

Colonel Sanders didn't start KFC until he was 66 years old.

....and there was 5,000 Kentucky Fried Chicken Stores just six years later.

I wonder what he would have achieved had he got serious a little earlier in life.


Jakk the Slum Lord
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Reply: 2
From: Simon .

Hiya Jacque,

I was talking to some other brokers about this the other day after a colleague did a loan for a chap in his 70's. We were wondering if it was discriminatory to not lend to someone on the basis of age. I am 37 and had my recent loan term reduced to 28 years instead of 30! I am getting on a bit I guess.

Anyway we agreed that some lenders will say no and some say yes. Tell your friends to see a broker or shop around a few lenders and I am sure there will be a solution out there.

Simon Macks
Mortgage Hunter
0425 228985
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Reply: 2.1
From: Les .

G'day Jacque,

Re "Their super is untouchable" - look down this path - it may well be that it is not untouchable at all.

Thoughts:- If converted to a Self Managed Super Fund, THEY can direct where the funds are invested. I believe you can't borrow within a SMSF, but, if they have sufficient value in there, I KNOW they could buy an IP outright. I've also heard of other possibilities with these (but had various Accountants advise against those possibilities...) - let me leave it with "It's certainly worth a look at what a SMSF could do for them"



- "Eschew Obfuscation" - ;^)
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Reply: 3
From: Rolf Latham

Hi Jax

I can answer the loan bit. No problems if they have income.

In too old or not too old, if they intend to kill the debt and are not relying on any specific growth time then their investment horizon is an almost irrelevant issue.

There are going to be increased and uninsurable risks for the more life experienced amongst us.


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Reply: 2.1.1
From: Terry W

I went to a bank training session recently and the 'banker' said he had just gotten a 80 year old (or was it a 90 year old) person a 30 year loan!

I also helped my parents with an IP loan at (which) bank. The wbanker suggested they get a PI loan and pay extra off it because they were in their fifties (even though they hadn't paid their own home off yet.) great advice!

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From: Rolf Latham


The lender you mention has a specific written policy to not assess loans beyond age 65.

They are however not alone. Most lenders have the idea that you cease to become financially useful at age 65.


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Reply: 3.1
From: Donna L

Call me old-fashioned but the word
"mortgage" means, roughly translated,
"unto death", not until you're 65. That's
why they have a mortgage. If you die, they
get the money from the estate or they take
the house. If you have the income and the
assets to support the loan, why the hell

Alternatively, you could speak to Steve
Navra. I do know he got a loan for an
eighty year old once....or maybe twice!

Donna L
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