Hi, I am purchasing an investment property with my wife and my brother and his wife. Will the bank insist we have one loan with one bank? Is there other things i should be aware of? Cheers, Forbes.

Hi Forbes,

Congratulations on buying an investment property. Generally most of the lenders will insist on the one loan against the new purchase. I am assuming that you are making this enquiry as you would prefer to keep your payments separate to your brother & his wife.
What you can do to ensure that you are responsible for your portion of the loan is set up two splits against the property which will assist in you & your brother being responsible for your portion of the loan.
If you would like some more details regarding this please feel free to contact me.

Hi Forbes,
I would also be talking to your account or finance broker about the option of using a fixed unit truat to apportion ownership.
The great thing about this option is that if any one wants out of the property they simple sell there units to the other unit holders rayher than tranferring ownership which results in addtional atamp duties.
Congratulations on entering the property markert and best of luck
regards Awesome Albert

Hi Forbes,
Congratulations on getting into the investment market. It is a great time to do so. There are some lenders that would be able to offer you 2 separate loan (ie.!one for yourself and one for your brother), this may be a good option for you as the largest and are separate from each other and if you or your brother decide to sell then you have the option of bringing in another investor for the percentage that your brother owned or you also have the option of taken over that portion.
The other option is to look at setting up a family trust, in this case it would definitely pay to talk to an accountant about the pros and cons of this.i hope this helps and if I can assist further please let me know.
Alan

The bank may insist because it's easier for them but may not be right for you. Assume it's only one property as security. If that's the case and you have one loan you need to cross guarantee each other so the mortgage is binding. That's the same if you have 2 loans on the same property. With 2 loans though you can keep and eye on your part but all of you are 100% liable for all of the debt not just your share.