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From: Bozo .
Hi,
Great Forum, great to see it still going strong.
I'm looking at purchasing a block of land and building a large house on it. The block of land is Brisbane bayside waterfront (so is pretty costly). I've a group of like minded friends all interested in being involved in the project, six in total (first time at doing this, so it's going to be a BIG learning process!).
Figures are something like:
Land: $400K
House: $300K
I've spoken to a guy at a bank in regard to the borrowing process. Loan approval isn't a problem, however... I asked him about the impact on future borrowings. His remarks indicated that as we would be borrowing $700K, and each person individually guaranteeing the loan, we would each be joint and separately liable for the total loan amount. I guess this means that if 3 people skip the country and can't be found, the remaining 3 are responsible for the repayments. Which means if I approach them to borrow for another IP in 12 months time, they'll assess my debt level and liability at $700K as opposed to my 1/6 share of it. Hardly fair I think.
I haven't shopped around yet, but the guy seemed to indicate this was common practice. Will have to do some further research... in the meantime, has anyone got any ideas on how we might be able to structure this to enable future borrowing?
Hi,
Great Forum, great to see it still going strong.
I'm looking at purchasing a block of land and building a large house on it. The block of land is Brisbane bayside waterfront (so is pretty costly). I've a group of like minded friends all interested in being involved in the project, six in total (first time at doing this, so it's going to be a BIG learning process!).
Figures are something like:
Land: $400K
House: $300K
I've spoken to a guy at a bank in regard to the borrowing process. Loan approval isn't a problem, however... I asked him about the impact on future borrowings. His remarks indicated that as we would be borrowing $700K, and each person individually guaranteeing the loan, we would each be joint and separately liable for the total loan amount. I guess this means that if 3 people skip the country and can't be found, the remaining 3 are responsible for the repayments. Which means if I approach them to borrow for another IP in 12 months time, they'll assess my debt level and liability at $700K as opposed to my 1/6 share of it. Hardly fair I think.
I haven't shopped around yet, but the guy seemed to indicate this was common practice. Will have to do some further research... in the meantime, has anyone got any ideas on how we might be able to structure this to enable future borrowing?
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