We have found a property that we wouldnt mind buying for my mother and her partner to move into. At the moment we think that they are ineligible to apply for a loan because he hasnt been in his job for 6 months. Therefore we would like to purchase it on their behalf. Does anyone have any thoughts on which option may be best to create win win situations for everyone, wrap, lease, etc??
Any assistance is appreciated.
Take Care
If he has a Permanent job then he may well qualify for a loan himself – this 6 month thing simply doesn’t exist for all lenders anymore.
Will save you all a lot of trouble.
Drop me a email if I can point you in the right direction.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You could do a wrap, but you have to be very careful. Theres a saying that family and business do not mix… And theres a possibility it could happen in this case.
The question is – if they stop paying are you prepared to kick them out? If the answer is no, then don’t do it.
This business does involve take backs, but if you can’t take back an uproductive house then you could be in trouble within a few months.Also with family you tend to get excuses more than strangers about non payment “the cars broken down and we needed to get it fixed”, etc. This is something you don’t need.
So unless you know your parents could handle it (i.e. they pay their bills on time, every time) and you are prepared to remve them for non payment there is just too much downside.Rgds.
Lucifer_authe problems with wrapping and LOs is the double stamp duty. ie when you buy it and then again when they buy it from you.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Why not buy it in conjunction with them? When they’re ready they can buy out your share for an agreed ( a greed?) price, depending on how much of a buck you want to make off your Mum…
theloanarranger
Hi, just a thought , why dont you buy it as an investment mum pays the loan amount you get the tax benifit. if mums on a pension she gets a pensioner rebate from centre link.
Maurn[angel][satan]nice thinking….
there are some creative suggestions here but I would get professional advice about the line between creative and tax avoidance from an ATO perspective. If it’s a good investment, why not just buy and your parents can pay as much rent as they can comfortably afford?
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