Personal Loan for Deposit.

[Reach]

Hi all,

Im a new starter, and was looking at investing in some property in new zealand. I have 20k, and was considering a personal loan in Australia (up to 40k) in order to have a enough to cover the required 20% of an oppurtunity in NZ. Is this possible? Is this legal?

I was wondering what peoples thought are on this?

My intention was to value add to the property and onsell, making a return after costs, including the interest payments on the loan. I am currently working, and could service the loan with my income.

I understand there are a number of risks involved with this, any advice would be appreciated.

Thanks

 

[Qlds007]

NZ Finance

Hi Reach

A loan of upto 90% LVR is available in NZ.

 

[WillG]

Is mortgage insurance an option ?

 

[waz11]

Pm

Reach - I have PM'd you.

Cheers,

Waz11

 

[Medine]

Hi Reach,

Getting a personal loan to use as a deposit is perfectly legal.

The only trick to it is that when you buy your property you'll have to show the bank that you can pay back the personal loan (which have high repayments) as well as your new loan.

Check this out first, with your bank or broker, to save the pain of getting a personal loan if it's not going to work.

Cheers, Medine

 

[Qlds007]

Personal Loan for deposit

Hi Medine

I did realise that. I do it for a living.

 

[Medine]

Hi Richard,

Sorry to offend, it was late and I meant to address my post to Reach ! Have ammended now.........

Cheers, Medine.