Hi everone,
My girlfriend’s family wants to purchase a residential property in Australia, but they are not citizen or having PR status. Her family operates business in their home country and intends to take on loan for the purchase. But I have contact many banks and some mortgage brokers told me that most banks do not accept foreign incomes. My question is there any other way they could get a loan ?
They proposed to me that I will be taking up the mortgage for them and they will be servicing the loan. By taking out the loan for them, I will be restricted to borrowing for my personal investment purpose.
Is there anyway I can both help my girlfriend’s family and help myself.
Thanks very much everyone,
CT
CT
Why don’t you ask them what’s in it for you?
Whose name will the title be in? Maybe you should say that if you take the loan out, you want 50% of any growth. You might be able to get all the tax benefits too.
Before you do anything i suggest you contact a solicitor and accountant to work out the impact on all parties.
Cheers
MelThanks Mel,
[Whose name will the title be in? Maybe you should say that if you take the loan out, you want 50% of any growth. You might be able to get all the tax benefits too.
The title will be under my name since I am taking out the loan. My gf name will also be included on the title as well.At the moment, with the price range of houses we are looking at, the lvr is not greater than 70%. They agreed that I could access to the equity. But I don’t want to do that since I am not the one who will be making the repayment. Rather, I hope they could get a loan for themselve, even in the unconventiional way.
Mel, you mentioned about tax benefits, could you clarify that a bit more thanks.Cheers,
]CT
Couldn’t they seek vendor finance in the form of a wrap or something? Maybe you could advise them to do that.
CT, I guess the question actually is ‘Who will be living in the house?’
If it’s you and/or your girlfriend there will be no tax benefits, but if you buy it as an IP, then there will be.
Cheers
Mel
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