Hi
I am new to this forum but have (like most) been lurking for a while. I find this forum really interesting even though most of it goes over my head!!
One of my family members wants to buy an investment property and I want to by a PPOR. I cannot really afford anything decent on my own and we have talked about buying a place together - most likely 50-50 with me living in it. My family member has a property worth around $550,000 with $280,000 still owing. I have nothing but can scrape together around $25,000. I currently live at home. We would be looking at a property around $350,000.
Here is where I get stuck. I know we are both responsible for 50% of the mortgage but obviously they are buying it as an investment and if I was not the tenant would expect the rent to cover a large portion of the mortgage so how do we work this out between us, without me paying as much as I would if I borrowed the whole amount myself? I just cannot get my head around it.
Any insight most welcome!! Thanks SK
I am new to this forum but have (like most) been lurking for a while. I find this forum really interesting even though most of it goes over my head!!
One of my family members wants to buy an investment property and I want to by a PPOR. I cannot really afford anything decent on my own and we have talked about buying a place together - most likely 50-50 with me living in it. My family member has a property worth around $550,000 with $280,000 still owing. I have nothing but can scrape together around $25,000. I currently live at home. We would be looking at a property around $350,000.
Here is where I get stuck. I know we are both responsible for 50% of the mortgage but obviously they are buying it as an investment and if I was not the tenant would expect the rent to cover a large portion of the mortgage so how do we work this out between us, without me paying as much as I would if I borrowed the whole amount myself? I just cannot get my head around it.
Any insight most welcome!! Thanks SK