So what complications can this have on me if I do what I stated above?
Ill need to check the papers...
Broker says I cant buy first IP
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So what complications can this have on me if I do what I stated above?
Ill need to check the papers...
complications include voiding of LL insurance, for a start....
Hmm. Where's TF when you need him?
But again, please, forgive me. I don't understand; wouldn't it be fraudulent to sign a contract with false information in order to obtain funds?
What is an LL insurance?
OK so in the end stating that you are renting out a property and then still living there is illegal? No wonder people sell drugs lol
I guess there ways around it though... cancel all utilities, redirect all my mail to a brother's/sister's house to pretend that I am living there and then no ones wiser. This is stupid seriously.
You're not talking 'does this rule have a loophole'. You're talking about lying to the bank and the ATO and hope you don't get caught. It's your head on the chopping block if the ATO comes knocking. Is the rule stupid? Maybe, but who cares. It's the rule. Break it at your peril.
Landlords insurance.
OK so in the end stating that you are renting out a property and then still living there is illegal? No wonder people sell drugs lol
No, that's not illegal, but that's not what you're talking about. You're saying 'can I call a property my PPOR even if I'm living in another property that I own'. THAT's illegal.
No... I want to have enough funding to buy my first IP. So buy stating that I have rented out my property I will be able to get more money from the bank to fund my first IP... then once I buy the first IP, i will declare one property as my PPOR and leave the other as IP...
Its funny, when you buy a PPOR the bank wants to see that you are working so that you can afford repayments... then if you lose your job, the bank does not care, as long as you can finance the repayments, thats all they care about. Well Id like to apply the same principle in my above example... makes sense?
Not really. But then, I start with the assumption that I don't lie to banks.
But hey, don't let me stop you. (shrugs)
Screw the banks... they lie and mislead every day to every one of their customers.
Yeah I may just save 10% of the purchase price and see what happens then.
saying your PPOR is a rental wont necessarily help much anyway, the lender will only use a proportion of the likely rent, and take into account a nominal rental for where you will now be residing, even if you live with a family member rent free.
Either adjust your income, your timeframe, or your property sights. Perhaps a regional property will be cheaper and give a better rental return, making it easier to service the new loan?
Either adjust your income, your timeframe, or your property sights. Perhaps a regional property will be cheaper and give a better rental return, making it easier to service the new loan?
This is what my broker said... Im going to save 35 K and then take the plunge... so that's probably another 12 months away.
Thanks everyone.
Excellent idea.
Let me let you in on a secret. When we banks find out we've been lied to in an appliction and we form the view said misrepresentation was of the more significant/thought through type, it is fair to say that the old argument about "the cost of bankrupting someone isn't worth the effort" pretty well goes out the window.
And let me say that, personally, it makes me feel all warm and fuzzy inside
scrubs TF off the "investors to contact" list...
Investment loan
I wouldn't go to all this trouble. You need to find your break costs as your current rate is too high. You cannot live in two places at one, so work out which property can give you the highest declared income and either get a lease or rental appraisal. You need 5% for purchase costs and 5% deposit ( equity etc) once this is achieved sit down with your broker. Comments are right the bank just wants things paid. The issue is if you don't pay and want to challenge in court. So no don't commit fraud just juggle the figures to suit.
At the very least you need to get a cheaper loan then your currently on.
What is an LL insurance?
OK so in the end stating that you are renting out a property and then still living there is illegal? No wonder people sell drugs lol
I guess there ways around it though... cancel all utilities, redirect all my mail to a brother's/sister's house to pretend that I am living there and then no ones wiser. This is stupid seriously.
I wouldn't go to all this trouble. You need to find your break costs as your current rate is too high. You cannot live in two places at one, so work out which property can give you the highest declared income and either get a lease or rental appraisal. You need 5% for purchase costs and 5% deposit ( equity etc) once this is achieved sit down with your broker. Comments are right the bank just wants things paid. The issue is if you don't pay and want to challenge in court. So no don't commit fraud just juggle the figures to suit.
At the very least you need to get a cheaper loan then your currently on.
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any scope to do some quick reno (get ur housemates to help for free beer), get a revaluation, then looking for perhaps a cheaper rural place with great cashflow...Use your savings on the reno (prob have to only spend $5 to put on $15-$20), then refinance with a new IO loan, pay the exit cost from that fixed loan
keeps ur investment momentum, maybe improves your cashflow, and if you buy smart, opens yourself up to CG...
keeps ur investment momentum, maybe improves your cashflow, and if you buy smart, opens yourself up to CG...
