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Giving money to a friend from our OD for 8 months to buy his owner occupier Home?
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My first thoughts - are you joking!
If you had $2 million cash in the bank, then maybe. But you are going to borrow to lend to them. Does this not sound risky?
If you did go ahead, you would need to see full financial statements to see what they actually have in the businesses and then get extremely good security of the businesses and everything else possible.
Overall I just wouldn't do it.
Ross
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Suggest they buy a house they can actually afford. Or borrow from their relatives.
It's one thing to have clauses in a contract, but if they don't pay what do you do? There may be remedies but the process will be hugely stressful and expensive, and yet still may not see you paid back.
Recommend you wish them well and politely decline.
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Giving money to a friend from our OD for 8 months to buy his owner occupier Home?
Hello There
Rather unusual query.
One of my friends from old school ( not a class mate but known through many reliable contacts of my friends) asked for a loan for AUD 150,000 as they don't have enough deposit to buy the house they are going to bid in the range of 1.2 - 1.4 Mil in Melbourne.
They do have a business they run ie 2 or 3 medical centers in the town & they are a bit stretched asked if we could 'loan' & that they are happy to pay for the Interest that cost us at bank for pulling the OD every fortnightly or monthly & agree to pay the full sum loaned by the 9th month .
And we discussed that we would want our lawyer or their lawyer to draft a this arrangement in writing.
I have been just wondering whether I should do it or not. There should be a some form of consequential clause there would n't it ? Is it okay to agree on such a deal ? . They have been reasonable people , we would love to help within a limit. And remainder of our OD will suffice for us to remain calm for 9 months. However , we are a retired couple too & live on cashflow from our rentals & got some mortgages still need paid off & cash flow wise rental yields are comfortable enough but again, who knows what sort of expenses yet to come, in this diabolic political set up. any known/unknown / hidden hiccups you could for see & any advise or comments from your learned audience ?
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