Hi Guys
This is an incredible site and the advice is excellent – thanks to all.
Quick question:
– I have a PPOR which I purchased in July last year
– I want to rent it out after the the 6 month FHBG vests
– I understand that I will have to pay back the pro rata element of the stamp duty concession
– Do I need to notify my bank of the change in intention?Thanks
propertybabynope i haven't i done exact same thing as yourself i had to change my loans over to IO from PI set this up wrong from the start.
I have done the same thing also, and have spoken to the bank about what i am doing and even organised another loan for a new property. The original loan i have taken out for the property stays exactly the same. The only thing that i would suggest is switching your insurance from General Home and Contents to Landlords insurance so that you are insured more accurately for what you are doing with the property.
If you ever get around to reading the fine print on your mortgage documents, if the bank was ever looking for a reason to foreclose, this could be it. By leasing the premises to a tenant, you have effectively parted with posession and are no longer in control of the premises.
In the case of commercial premises this is extremely relevant – mortgagee signs a consent which is filed (for registed leases).
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