Hi,
My parents are wanting to downsize from their current house and I have some questions on their behalf.
They are both 67, fully retired. Dad is on a good defined benefits scheme (government) and has a gross income of around $70k. They own two new model cars outright, and have a caravan with about a $10k loan. Both very active and healthy. They have about $15K available for a deposit.
They own a house in a regional Victorian town outright, and are in the process of putting it on the market. I would assess it to be in the mid $300k mark.
They plan to sell up and move to Bendigo because it is closer to other family. They are after something smaller, but still a house, and we assess that in Bendigo, that puts them in a mid to high $300k mark, so they will probably need a small amount of finance if they sell their house first and then subsequently buy (maybe 50 or 60 thousand, depending on what they get).
I think this is probably a reasonable chance to do some equity release for them, so that they have more money in retirement, using a higher loan and an offset, but not sure if they will be comfortable with that.
So my question is, are there any option available for them to start offering on houses in the new location using the existing equity in their house, or are they just better off making their offers 'subject to the sale of their existing property'?
Are they likely to be able to get a loan under these conditions, and would it be worthwhile dealing with a broker for this sort of arrangement?
Regards
Murphy
My parents are wanting to downsize from their current house and I have some questions on their behalf.
They are both 67, fully retired. Dad is on a good defined benefits scheme (government) and has a gross income of around $70k. They own two new model cars outright, and have a caravan with about a $10k loan. Both very active and healthy. They have about $15K available for a deposit.
They own a house in a regional Victorian town outright, and are in the process of putting it on the market. I would assess it to be in the mid $300k mark.
They plan to sell up and move to Bendigo because it is closer to other family. They are after something smaller, but still a house, and we assess that in Bendigo, that puts them in a mid to high $300k mark, so they will probably need a small amount of finance if they sell their house first and then subsequently buy (maybe 50 or 60 thousand, depending on what they get).
I think this is probably a reasonable chance to do some equity release for them, so that they have more money in retirement, using a higher loan and an offset, but not sure if they will be comfortable with that.
So my question is, are there any option available for them to start offering on houses in the new location using the existing equity in their house, or are they just better off making their offers 'subject to the sale of their existing property'?
Are they likely to be able to get a loan under these conditions, and would it be worthwhile dealing with a broker for this sort of arrangement?
Regards
Murphy