All Topics / Finance / Calculating personal expenses when living rent free

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  • Walking to run
    Participant
    @alisdair-horgen
    Join Date: 2014
    Post Count: 68

    So, it would be nice to buy a PPOR but I don’t want it to affect my borrowing power.

    This is not unfamiliar to anyone.

    What if my partner buys a property and can service the repayments and everything goes into her name?

    Would it work? Could I argue i live rent free? I’m sure that’d drop me to minimum expenses and maximum borrowing power.

    Only problem I see is they won’t accept free rent and do their own calculation. Also, is it totally normal for one partner to put the house in their name even If they’re married?

    Thanks everyone.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Her debt is not your debt, so you would not be assessed on it unless you go on the loan too or guarantee the loan.

    Most lenders base your expenses on your status – married/single plus dependants etc.

    Yes totally normal and a strategy that I recommend. But get legal advice – what if she/he dies and leaves the property to her mother, what if she sells it, mortgages it etc without your knowledge.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Walking to run
    Participant
    @alisdair-horgen
    Join Date: 2014
    Post Count: 68

    Thanks Terry. She’s not allowed to die!

Viewing 3 posts - 1 through 3 (of 3 total)

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