Hi guys,
i'm looking for some finance options for an investment property.
my situation – im a temp australian resident (lived here for 2.5 years but dont yet have permanent residence)
im employed full time 70k + a year and a tax resident.im currently looking for finance on a house and land package costing 300 – 350k
being a temp resident im subject to firb approval and a max LVR of 80% from most lenders?
options.
1) finding a lender that will lend me more than 80% lvr so i dont have to put down a large deposit.
if this is an option does anybody know a lender that will do this?2) pay 20% deposit – i can scrap to this money from some shares i have but would like to keep them there and from LOC on my partners property but she would not be able to claim a deduction on if i used it for an ivestment. ideally like to use the LOC to purchase another property in her name so she can get the deductions.
Anyone know a way around this situation so i can claim a deduction ect?
3) unknown ground – my partner has 3 properties, 2 of which i know have an lvr of 80% or slightly less.
is there anyway i can use her remaining equity as security for my purchase?
if so, what implications does that have for her?
and yes i wil be refinancing once construction is complete.
4) open to ideas
regards
Pete
Pete
> 80% LVR will normally require LMI and neither of the big mortgage insurers will provide cover to a Non resident.
There is nothing to stop your partner to lend you the money from her LOC at the same rate as she is being charged and then both of you can claim the appropriate deduction. You can then refinance if and when you have a permanent Visa and repay the loan.
With regards to the equity question she would be better off to increase her LOC and do as suggested above.
Richard Taylor | Australia's leading private lender
Thanks Richard, very helpfull
i had considered getting her to lend me money from her LOC but am unsure how to go about it, how does the ato view someone borrowing money then lending it out at the same rate? does it have to be lent out at a higher rate? also is there any issues with partners lending money between them?
cheers
pete
Hi Pete
ATO would have no issue but to protect you both i would document it properly.
You could even get a Mortgage drawn up and just elect not to lodge or register it.
Richard Taylor | Australia's leading private lender
Thanks again Richard,
i'm guessing a document written up by a solicitor would be the best option but as we are not in the business of ripping each other off are we able to have her money paid into a new account in my name and show myself making repayments with interest – is there somewhere i can get an agreement where i just have to fill in the details?
thanks again
Pete
Hi Pete
Not so much for protection for each of you but more to prove to the ATO that the agreement is in place.
I use a blank Mortgage Form 1 document here in Qld but each State is different.
Just ask your Solicitor for a blank Mortgage and complete the bits yourself.
Richard Taylor | Australia's leading private lender
Thanks again Richard, your a wealth of knowledge.
i will contact my solicitor 1st thing monday!
does anybody know how lenders would view my partners borrowing capacity if she were to supply me with a mortgage from her LOC?
regards
Pete
Pete
Not exactly sure i understand the last point but i will try and answer it.
Her loan to you would be considered an Asset and the repayments income however the LOC would be considered a liability and hence the credit limit taken into play when calculating her expenditure.
Richard Taylor | Australia's leading private lender
sorry Richard i didn't put it in a very clear way. but you hit the nail on the head!
i wasn't sure if lenders would see it as as an accetable/safe form of income for my partner for further lending purposes.
thanks again for your help!!!
Pete
Pleasure Pete
Always happy to assist.
Richard Taylor | Australia's leading private lender
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