Good advice Fern

Terryw
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Another point.

You should talk to someone at Centrelink itself. They have ‘financial advisors’ there who can help.

Also, for a recent legal case at the NSW supreme Court involving a life tenancy see Phillips v Hunt [2005] NSWSC 978:
http://caselaw.lawlink.nsw.gov.au/isysquery/irl80b9/1/doc

Terryw
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Gross.

Can usually caveat, if the contract allows it. But this will not prevent the property being repossessed by the lender if the wrapper fails to pay.

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Yes, very high risk. Why can’t they get normal finance?

Check out the LVRs. What other assets do they own? If something goes wrong, you will need to start legal proceedings to get your money back. If not equity or other assets, then you could be in trouble.

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In Victoria, this is what I think happens.

First you have to give them the 14 day notice to vacate. And if they don’t leave, then you need apply to the Victorian Civil and Administrative Tribunal (VCAT) for a possession order (this can be done before the 14days). VCAT will make a legally enforceable order. You may be granted a possession order and an order that the tenant pay you rent monies owed. You can then apply for a warrant to get the police/sherrif to reposses the property. (the warrant could be up to 30 days).

If they owe you money, then send them a letter of demand. The hard part will be finding where they have moved to. Once you locate them you can begin legal action to recover your debt – eg. apply to have their wages garnished, property seized etc.

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You may lose all or part of your CGT exemption if you are creating an income from the property while living in it. I beleive the 6 year rule cannot apply in this situation.

Please speak to a good accountant before you do anything.

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These days No Doc type loans are available at 70% LVR. This would be the easy option for you.

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Carl

Let us know if they get back to you.

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I have spoken to a few lenders about this before. Bankwest, Adelaide Bank and Liberty Finance are some that have indicated they will look at these sorts of deals.

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Maybe you could partner with a third party – buying in their name?

However, if your wife found out she could possibly argue that the property is being held in trust for you.

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