Hi, I am in a situation where I need to raise an extra $30k for buying a piece of land.
My wife is running a dog walking service and also boarding and home dog sitting etc. We are pushing to buy a piece of land in the designated kennel zone to establish kennels to conitnue to grow the business. Because of the zoning of the land all lenders are demanding 10% plus stamp duty beofe they will lend and this puts me at needing $46k. We currently have $16k and are saving $3.5k per month.
I have another property which is on a great interest rate and I can remortgage that to release the equity but I will lose the rate and pay almost three times as much in interest alone.
I have spoken to several brokers and the latest one is suggesting that I apply for a loan to cover the required $30k. My understanding of this is that I will not be able to obtain a mortgage if I were to obtain a loan because lenders would not like to see raising the deposit this way.
The cash that we already have is in genuine savings so the banks are happy with that so I am told.
Just looking for any different angles on solving this one a better way and would appreciate any suggestions.
We considered vendor finance and have been warned off of doing that although I do believe it is an option if we want to take it.
Best answer gets a smiley face..
My wife is running a dog walking service and also boarding and home dog sitting etc. We are pushing to buy a piece of land in the designated kennel zone to establish kennels to conitnue to grow the business. Because of the zoning of the land all lenders are demanding 10% plus stamp duty beofe they will lend and this puts me at needing $46k. We currently have $16k and are saving $3.5k per month.
I have another property which is on a great interest rate and I can remortgage that to release the equity but I will lose the rate and pay almost three times as much in interest alone.
I have spoken to several brokers and the latest one is suggesting that I apply for a loan to cover the required $30k. My understanding of this is that I will not be able to obtain a mortgage if I were to obtain a loan because lenders would not like to see raising the deposit this way.
The cash that we already have is in genuine savings so the banks are happy with that so I am told.
Just looking for any different angles on solving this one a better way and would appreciate any suggestions.
We considered vendor finance and have been warned off of doing that although I do believe it is an option if we want to take it.
Best answer gets a smiley face..