hi everyone i dont have much idea when it comes to equity. but my fiance and i own our propertys and we are wanting to buy together is it possible to use the equity from both our houses to buy a new home to live in and have it paid off . can we get the loans shifted onto our exsiting homes as our rental propertys i hope this makes sense and is it possible
An only too common scenario.
Regretfully the "Purpose Test" applies and clearly the purpose is to purchase a PPOR so no go there.
An alternative would be to look at selling both properties into a Unit Trust structure and borrow 100% of the purchase price.
Whilst Stamp Duty would be payable on the individual Transfer prices the interest on the residual funds would Tax deductible and the money could be used to purchase your PPOR.Your mortgage broker should be able to assist you in setting up the structure correctly.
Richard Taylor | Australia's leading private lender
thanks for the advice i am still a bit confused after what you said i have never heard of a trust we are still keeping the propertys but they are going into a trust is that correct and do you have any good contacts in cranbourne area that could guide us in the right direction thanks so much for your advice
Yes you are retaining ownership of the individual properties as you would be the Unit holder or Trustee.
Dont know anyone in the Melbourne area but if you require a mortgage broker you merely need one with some experience of investment and Trust structuring.
Richard Taylor | Australia's leading private lender
thanks so much for your advice
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