Helping family member with 1st property

Discussion in 'Investment Strategy' started by Scott C, 28th May, 2020.

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  1. Scott C

    Scott C Member

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    5th May, 2018
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    Location:
    Brisbane
    Hi, hoping for advise if possible.

    My brother is looking at getting into property market. His budget is around $600k although he hasn't had any bank approval yet to get a number he can borrow. Income $104k pa.

    My parents and I were hoping to get him something around where we live but think he would need around $700k to get anything.

    My question is: if I put in $50k as a loan, parents $50k as a loan, and my brother puts in $50k himself as a deposit, is there a way where we can avoid "loaning" him the money and have it tied up with the bank against the loan?
     
  2. Trainee

    Trainee Well-Known Member

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    Are there any decisions your brother is making for himself in this scenario?

    If he has that income, let him save and buy it himself. If he doesnt have that desire, why force him?
     
  3. Scott C

    Scott C Member

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    5th May, 2018
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    Location:
    Brisbane
    No ones forcing him, just trying to help him out as we feel now is a good time to buy in a buyers market and if he waits to build up a larger deposit the prices may have appreciated where he cant afford houses in the area.
     
  4. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

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    Perth WA
    Is he buying a home, or an investment? If an investment, let him do his own research and buy where he thinks - otherwise if it doesn't go well, it'll cause issues in the family - especially if he can't return your loaned money.
     
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Location:
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    Family Guarantee would be betta, BUT doesnt fix a servicing issue

    Agree with the above feedback on advice too !

    ta
    rolf