Posted: 12/3/2008 8:36:14 PM EDT
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I know that rates and everything vary since i am in a different country but.
I am 18 in the next two weeks my pay will in crease to just below full time I will be eearning about 24k before tax. My bank will give me a 63K morgage if i have a 3k deposit. I live at home with my parents so i have nearly a full 24k disposible income. My friend who is 17 lives at home with herr parents and has about 15k disposabile income. if we combine out money and get a join morgage the bank will give us 134k for 30 years. the idea we have been toying with is getting a house or block of flats to rent out. the rent would pay the morgage give us a little bit of income. Is getting a joint morgage with my best friend a good idea? My mum likes the idea of this so does my friend, even though it was my own idea im, not sure if its really a good idea considering every week without a tenant or paying tenant is roughy 2-300 from our weekly pay. |
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Quoted:
I know that rates and everything vary since i am in a different country but. I am 18 in the next two weeks my pay will in crease to just below full time I will be eearning about 24k before tax. My bank will give me a 63K morgage if i have a 3k deposit. I live at home with my parents so i have nearly a full 24k disposible income. My friend who is 17 lives at home with herr parents and has about 15k disposabile income. if we combine out money and get a join morgage the bank will give us 134k for 30 years. the idea we have been toying with is getting a house or block of flats to rent out. the rent would pay the morgage give us a little bit of income. Is getting a joint morgage with my best friend a good idea? My mum likes the idea of this so does my friend, even though it was my own idea im, not sure if its really a good idea considering every week without a tenant or paying tenant is roughy 2-300 from our weekly pay. I know nothing of how things work in NZL but, IMHE (experience): NO! You are already in doubt, walk away young man. |
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I think you are think of this backwards. The first question is will you make money. Will the rent cover interest, repairs, depreciation, taxes, etc, and let you make a profit.
A very small negative cash flow is OK- In other words if you have to pay for a small part of the principal. In the US, most morgage rates assume you live in the house, planning on renting and not telling them is fraud. Of course they will loan you money for rental property, but at a higher rate. |
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Being a slum lord(just kidding …I think) is a good idea in the coming economic collapse. But there is talk right now in Washington of lowering home mortgage rates, maybe a lot. So I’d hold off for a bit and see if you can get a interest rate deal.
Question: If we had a future period of hyperinflation, say everything you need to live on doubled or tripled could you still make it if you invested now? If you answer no I’d wait. |
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Quoted:
Never confuse what you can afford with what a bank will lend you. About 10 years ago I went to the bank and got pre-approved for a loan payment of about $900. I only took home about $1200. How the hell was I supposed to eat, let only buy hookers and blow? 
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I doubt I'm qualified to answer a mortgage question about NZ. I am looking to purchase another property in the US largely because I believe the US is heading towards stagflation, and I expect property to increase in value, and fixed rate debt to be worth less over time. Some other factors in my decision is that I have a secure job that's unlikely to be affected by the economic upheaval, and I have enough of a down payment and credit history to be able to obtain a decent interest rate. If I worked in the car industry, I'd be saving my penny's right now.
Dealing with renters is a hassle, and requires you have some savings in addition to your down payment to afford vacancies and slow/no pays. Furthermore, you'll have to budget for maintenance. When a water heater ruptures, you end up with quite a bit of damage: especially when the renter doesn't know where the main water valve is located (ask me how I know). So, from personal experience, make sure you replace the water heaters before it's too late .
Finally, making a friend into a business partner has it's own set of problems.... |
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please listen to me. I made a mistake of buying a house it was the worst financial decision I've made I make very very good money but truely and I kick myself for this everyday, save your cash and do something else.
If I knew then what I know now I would have bought a doublewide with what I put as a downpayment on this place and owned it free and clear. my job took a turn and now im not bringing in what im paying out. stuff happens that you cannot foresee comming. im not trying to scare you im trying to tell you my experience and how it has for the foreseeable future ruined my hopes and dreams. the old saying holds true...."if you can't pay cash for it you can't afford it" please keep that in mind with every purchase you make. |
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Quoted:
Uhhh...no. 
Do it by yourself for whatever they'll approve you for. Somehow I find it comforting that the teenagers in NZL are just as crazy as the ones here in the Colonies. It's a false sense of comfort. Im only one of the few. Considering everything that has been said I think I will do it by myself. Granted the house will be smaller, cheaper with lower rent and thus lower profits but the deposit will have to be larger so I will end up owning more of the house to begin with. Also the risk of falling out with a friend won't be there or the risk of her backing out. Thanks for the help! |
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Just a bit of advice: you shouldn't by real estate with "friends". +1 US mortgage rates are low and predicted to drop lower. The good thing is, they're not loaning money out like they used to. I've heard this more than once "plenty of people who want a house, very very few people who can buy a house". Mortgage agents, like realtors, are starving for non-FHA/HUD loans right now (and those are quite a bit more difficult to get than in years past). We're a "minimal review" 20 yr fixed loan. Just over 20% down with enough liquidity to nearly pay off the mortgage now. We own our cars, the only debt (~$4k) with wife's business (to maintain credit). I've had to provide everything but a stool sample to the loan officer. We close this coming Monday so it's still possible I'll need a baggy in hand before I sign. good luck with your mortgage search... |