rawgir

Hi All,

Need URGENT advice!!!!!! I want to start a business and also buy a house, but dont know which one should i do first... well let me explain my situation.

I came to Brisbane in Oct 2008 On a Sponsored 457 work visa with my wife. I am a chef by profession and my wife was also working in Brisbane as a Lecturer(hospitality) and then she quit after she gave birth to our daughter in January 2010. Meanwhile I applied through the company for my Permanent Residency which I got in February 2011. Same month I was internally promoted & transferred to Sydney in a sister hotel.

Now its been 6 months here and we desperately want to go back to Brisbane, which will happen in next 2 months.

After relocating to Brisbane within 3-4 months we wish to buy a house & want to open a small restaurant or cafe. I can arrange 25,000 - 30,000 cash if I stretch myself.

Now the dilemma is whether we should buy a house first with whatever money we have and take the mortgage and after 3-4 months apply for a new Loan to start a business on the basis that we have a house
OR
invest our money to open a restaurant with a loan and then after 3-4 months apply for home loan to buy a house.

Which will be the next best option?????? We have no idea and help.....Any advice or suggestions will be immensely helpful and appreciated.

rawgir

NickyC

What do houses cost where you want to live in Brisbane?

I'd have thought it would be quite tricky to get a house with such a modest deposit. You'd be up for a mortgage of well over 90% to get anything livable. Plus you'd also have to pay LMI.

Also don't think it will be that easy to borrow more within a couple of months. The fact you have a heavily-mortgaged house won't really assist.

My advice would be to save more money before you get into buying a house or a business.

rawgir

Hi Nicky thanks for replying...... wel i understand where you coming from but if you include First home owner GRANT AND Building boost grant it will again add $ 20k to our total. so in January next year i will have almonst 55 - 60 k.

we wil be looking a house in Brisbane North,,, may be Carseldine, Fitzgibbons, Shorncliff or Strathpine. And i think we can buy a house there for 350 k ( finger crossed)
but still in dilemma which option should we go first,,,,
HOUSE OR BUSINESS ?????????

Rossi

No Dilemma at all........ THE HOUSE COMES FIRST

A job that pays enough to get you a mortgage is a prerequisite to all you are after.

More research is carried out by you about your business whilst you are doing that, to make sure it can service both the business overheads and the house mortgage repayments

You seem quite naieve, as we all did when starting our 1st business

IF you go self employed 1st, you are going to need at least 2 years of "audited accounts" to present to the bank, to try and convince them your business is strong enough to support them letting you have a mortgage

IF you could buy a cafe with accomodation over it as a going concern, could be a possibility. But I think you would be looking at paying the amount you have suggested as a deposit, for the "goodwill and fixtures/fittings" of the business. Which means you are going to have one heck of a time convincing a lending manager that you (with no current experience of running a self owned business) are a safe bet to lend to

Just remember 2 things about business and banking
1. They will only lend you the cash IF you can prove to them you don't really need it
2. When the sun shines on your business accounts, they will lend you an umbrella - when it rains on your accounts, they want it back

Ozzidoc

Why the urgency?

Best wishes