Buying for self use but tenanted for a small period

[jamesnz]

Hi there

i am thinking of buying a house which is presently tenanted.
The existing rental lease will expire in Jan 17 after which I intend to move in.

my question is if I buy that house, will be treated as an Investor or home owner for the LVR

Thanks for advising

[Don't believe the Hype]

The truth is at the moment the financial institutions are themselves trying to work out how they implement the new rules...

If you're buying to live it should be 80% borrowing based on the 'intent' of the policy even if you don't move in till Jan but you never know how the banks might interpret it... Different banks might even (almost certainly) interpret differently.

There are some things you could do to strengthen your position with the banks that you're moving in.
- agree to a delayed settlement so you take possession of the property in Oct/Nov by which time you could give tenants notice the lease won't be renewed OR even vacant possession
- have a clause in the contract saying the tenancy will not be renewed and/or even have the current owner send communication to tenant the lease will not be extended
- pay out the tenancy - you could pay the tenant to move out earlier than Jan.

good luck

[Bobsyouruncle]

If you're buying it to live in it will be 80%, no issue.