Hey all, I'm a property newbie at the moment but keen learn and grow of everyone here, I came across this forum when i started looking for my first investment property at 19 and by 20 had bought myself a 2 bedroom unit with my brother in SE Melb, having recently renovated it and renting it out i have got the bug to buy more property/another project. Currently looking at property in the Frankston/Bayside region Im using this forum to gain info on Property tax minimisation and reductions and structuring/setting up a portfolio with my brother (I've set an ambitious goal of 10 properties in 10 years) and hopefully a lot more other useful knowledge. Ive started flicking through a few books in my spare time and any suggestions are welcomed! Thanks for all your advice in advance. Cheers
Talk to a mortgage broker. Buying with someone may damage your borrowing capacity. Besides the other potential problems of buying with others.
That's the first thing i did when buying my first property was use a mortgage broker. Yeah i've read the pro's and con's when it comes to investing with family and friends but have taken that risk as we both work well together, myself being a sparky and him a chippy. I may even look into setting up a trust in the future for protection etc, but yet to wrap my head around it
Did you ask the broker what your borrowing capacities would be if you bought separately? Having reno skills in the family is gold.work together on renos, but its likely you will end up acquiring more if you buy separately.
Yes we weighed up the options at the time, it was more to get his foot in the door due to being on a lower wage. But when his income increases we may look at buying separately, but I'll try and seek advice first
Did you look at the servicibility issue when borrowing with somebody else? If me memory serves me correctly, as you are each jointly and separately liable, you are generally each assessed as having full responsibility for servicing the loan when it comes to servicibility when you want to buy your next property.