Using equity to purchase new property.

[jaycee]

Hi tokenfunder

I meant to SHOW tht it cost $12k before you got some tax back. That's what I see.

People focus on the aftetax net return, but be aware of the full cost.

Most spruikers, don't tell you they used 48.5% to work out the tax return, and blurt out the net figure as if it's fact... never mind you may be on 30% tax rate chaning the results maybe dramatically for you.

 

[Bradsdad]

So you're both living in the current house?
Loan of $80K is in Joint names?
You earn $30k?
She Earns $20k? or less?
Are these figures inclusive of super or + super?
what is employments status? i.e. Ft, PT or casual?
How long in current employment?
Any other loans (incl credit cards or HECS)?
Either of you have kids/spouse?

Without this information plus maybe more nobody can pass comment on what you can and can't borrow.

Hmmmmm actually, I'm sure someone "could" but.......


Food for thought.....

Any joint borrowing will impact on you both should either of you find a partner and then wish to by your "own" home. You and/or your sister would be accountable for the full joint commitment when applying for your "own" home.
Even though things maybe rosy between you both now, troubles can start down the track when one of you decide on a different direction. It's not just a case of "talking her into it". You both need to be aware of future limitations and then make an educated decision on the path you take.

BTW, you don't have $220k available as nobody is going to lend you 100% of the equity. I'd hazard to guess that 95% would be very VERY tough also.

Regards
Steve

 

[alex9050]

So you're both living in the current house?
Loan of $80K is in Joint names?
You earn $30k?
She Earns $20k? or less?
Are these figures inclusive of super or + super?
what is employments status? i.e. Ft, PT or casual?
How long in current employment?
Any other loans (incl credit cards or HECS)?
Either of you have kids/spouse?

Without this information plus maybe more nobody can pass comment on what you can and can't borrow.

Hmmmmm actually, I'm sure someone "could" but.......


Food for thought.....

Any joint borrowing will impact on you both should either of you find a partner and then wish to by your "own" home. You and/or your sister would be accountable for the full joint commitment when applying for your "own" home.
Even though things maybe rosy between you both now, troubles can start down the track when one of you decide on a different direction. It's not just a case of "talking her into it". You both need to be aware of future limitations and then make an educated decision on the path you take.

BTW, you don't have $220k available as nobody is going to lend you 100% of the equity. I'd hazard to guess that 95% would be very VERY tough also.

Regards
Steve

Thanks for the reply, I've decided to do some more homework in my own time for the remainder of my degree, (Another 2 years.) When I can earn some more money I'll sell up and split the money with my sister so I can do what I want with it - because you guys are right, things turn bad, unexpectedly and I'd rather have myself to blame.

Thanks for the help everyone