Yes you could, but …. it may be complicated as you and your mum will have to guarantee.

A possibly better way would be to extra funds and lend to your wife or trust.

What if your brother gets married or into a defacto? Will you transfer it back?

And don't forget if it is hard to finance = hard to sell = lower appreciation.

I think the FHOG is not going to be around for long and it is a good time to buy property, so I would favour option 2.
But ideally where do you want to live?

Either way I would immediately stop paying extra on the investment property and would change the loan to interest only and put all your money into a 100% offset account. If you do buy a new property to live in all the extra payments will be locked into the IP and you won't get the full atax advanatages available.

Hi carlin

6 year rule only applies to absences from your property.

Hi Carlin

I think the rental income may affect the pension, but will depend on the circumstances. You should ring Centrelink and talk to one of the financial 'advisors' there. They should be able to assist.

One potential problem is if they have a mortgage on the place now. They will not be able to transfer title until you pay them enough for them to pay out their own loan.

Another problem is what if you do not repay the loan within the year?? They could sue you and possibly force a sale.

Another option would be to leave the title in their name and do a 'wrap'.

Best to talk to a solciitor

Hi Pos, yes there are big problems for those wishing to refinance an existing low doc. Richard mentioned the 2 main hurdles.
It would be ashame if you were waiting all this time and are unable to get out of rams!

If you rent out part of your PPOR you will lose the CGT exemption on that part. Based on floor space as Duxter mentioned. You should also be able to claim part of all costs and depreciation as well. But having a LOC is not good if you use this by putting all income in and taking out money for groceries etc. The tax deductible portion will be decreasing rapidy, faster that the actual loan balance.

Carlin. It doesn't matter whether you claim or not you will still lose the CGT exemption if you are making money by renting part out. But if you are just having a boarder and charging them for minor expenses such as food and water bills etc, then this could be exempt from income tax and CGT.

You could transfer a PPOR to one name, but stamp duty would probably be payable. It is usually exempt if transfering from 1 to 2 names, but not sure if the other way around. What state are you in? If you do this you will still have the CGT problems tho, so best to use the lowest income earner – but remember incomes will change in the future and the loest income earner now could be the highest later.

Low Doc loans are only available, usually, up to a max of 80% LVR. So the available equity to use will be:
Value x 80% – existing loan.

However, these days of tightening credit policies, most low doc lenders have restricted cash out on low doc loans to a max of around $20k. But they still may be able to make the funds available for the new purchase if they can control where the funds go. ie they may insist of paying the funds directly into the new purchase some how.