Hello All
18 months ago my partner and I purchased a property using Keystart finance. As our combined income was too high to finance through Keystart we were forced to put the property into my name alone. We have sinced moved out of the property and are leasing it out. We have also had a child and i'm on maternity leave therefor earning no income. The property is considered our PPOR as we are renting the house we are living in. We are in a sticky situation as Keystart require us to owner occupy the house, they granted us a 12 month period to lease the house out before we either have to re-occupy the house or sell it. We have moved 600km away and do not plan on returning to the property. The problem is we can't refinance it as it's in my name and i don't have an income, if we refinance into my partners name we would have to pay SD and then would also we eligible for CGT as it would become an IP. My question is, can we use the equity in the property to buy a house where we are now living, in my partners name or joint names? Obviously we don't have the cash deposit as our money is tied up in the other house. We plan on selling the other property but would like to buy another house before we do so that we can make full use of the equity. Is this possible?
Sorry its very long winded but there are lots of complications it seems and we don't know where to start.
Any advice would be appreciated.
Cheers
Michelle
michj wrote:Hello All18 months ago my partner and I purchased a property using Keystart finance. As our combined income was too high to finance through Keystart we were forced to put the property into my name alone. We have sinced moved out of the property and are leasing it out. We have also had a child and i'm on maternity leave therefor earning no income. The property is considered our PPOR as we are renting the house we are living in. We are in a sticky situation as Keystart require us to owner occupy the house, they granted us a 12 month period to lease the house out before we either have to re-occupy the house or sell it. We have moved 600km away and do not plan on returning to the property. The problem is we can't refinance it as it's in my name and i don't have an income, if we refinance into my partners name we would have to pay SD and then would also we eligible for CGT as it would become an IP. My question is, can we use the equity in the property to buy a house where we are now living, in my partners name or joint names? Obviously we don't have the cash deposit as our money is tied up in the other house. We plan on selling the other property but would like to buy another house before we do so that we can make full use of the equity. Is this possible?
Sorry its very long winded but there are lots of complications it seems and we don't know where to start.
Any advice would be appreciated.
Cheers
Michelle
wow! a bad situations to be in…i never liked keystart; yes i know they are aimed for lower house hold owner since they are manged by WA Department of Housing….sigh
Yes it is possible to buy another place under joint name- use your equity ( if any) plus use her income to support the transaction. The sell your current PPOR with no GCT and move into the new one – PERFECT but…The only way around this is to take out a bridging loan! because without looking at your income i doubt your partner’s income can support 2 mortgage? am i right….
If that is the case, a bridging loan will take in consideration that the old place will be sold – so serviceability is slightly better, and affordable.- One of the main condition to a bridging loan is you got 6month ( some lenders up to 12month) to sell the place; till your “FORCE” to pay the 2 mortgages and force to sell.
It’s a good idea to see how much equity you have in your current home first and to see if a bridging loan is possible for your situation.
Email me if you want more help/details- i can send you a flyer and a step by step guild if required.Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
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