I'm considering purchasing an investment property (90% loan) in conjunction with my brother who is a Doctor therefore qualifies for exemption of mortgage insurance with anz, under there lending criteria. An additional advantage is that this would improve my borrowing power.
Problem according to my mortgage broker is that this would effectively reduce my subse end borrowing capacity as I would be assessed as liable for 100% of the debt but only 50,% of the rental income, regardless of ownership split.
To escape this, I'd like to transition to full ownership down the track.
I'm told by my broker that this is complex and he is not sure of what the overall tax implications are - ie returns and capital gains tax.
The objective is to have my brother on title in order to avoid mortgage insurance and harness his borrowing capacity, without invoking complicated and costly consequences down the track.
Any advise on best way to proceed would be greatly appreciated!
Problem according to my mortgage broker is that this would effectively reduce my subse end borrowing capacity as I would be assessed as liable for 100% of the debt but only 50,% of the rental income, regardless of ownership split.
To escape this, I'd like to transition to full ownership down the track.
I'm told by my broker that this is complex and he is not sure of what the overall tax implications are - ie returns and capital gains tax.
The objective is to have my brother on title in order to avoid mortgage insurance and harness his borrowing capacity, without invoking complicated and costly consequences down the track.
Any advise on best way to proceed would be greatly appreciated!
