Need HELP Pleez

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From: B S


I bought an IP, a unit, about 4 years ago and went 50/50 with my brother. It is as of recently +ly geared. The unit now has a nice $80K+ equity in it and I want to use this to buy a second place.
I was told by a mortgage broker that I'm in trouble because of the 50% holding and that I should a) buy out my brother, b) have him buy me out or c) sell it. Is this true in this situation?
And the buyout would be roughly $35K which would be added to the existing loan which would make the property -ly geared now by about $200/mth. I would also have to refinance this loan to get a cheaper int. rate and fix it to I/O which I'm hoping to do for about 3 years.
I'm just seeking second oppinions as to whether or not what I was told is true and whether buying my brother out is the best option.
Thankyou for your replies
 
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Reply: 1
From: Rolf Latham


Hi

Your broker is probably concernded about "joint and several liability" for the debt, but only being assessed on half the income. Only a problem if its a problem to you or your brothers service capacity etc etc.

Ta

Rolf
 
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Reply: 1.1
From: B S


Rolf could u pleez explain.
Thanx again
 
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