Originally posted by jamesnz
View Post
Announcement
Collapse
No announcement yet.
Tenanted house classified as Investor only for LVR ?
Collapse
X
-
-
Originally posted by jamesnz View PostHi there
Any recommendations for a good mortgage broker in Wellington?
No home grant or kiwi saver involved
200k joint income of Wife and I
550K property 20% LVR mix of fixed and floating interest loan linked with offset savings account
Both Permanent Resident Visa holders
Thanks for advising
Comment
-
Why does it sound like rubbish?
For an 80% LVR you have to be buying the property for yourself.
If it is tenanted when you buy it and you keep it tenanted for a month or so then it is an investment property surely?
Other wise you could buy this one as your own home, leave it tenanted and then in a few months buy another via a different bank (they won't know what LVR you purchased on).
As for borrowing to upgrade - that is up to the bank what they'd allow. I'd expect any borrowings have to come within the appropriate LVR requirements at the time you buy (not take into account some potential future value).
Comment
-
Originally posted by Wayne View PostWhy does it sound like rubbish?
For an 80% LVR you have to be buying the property for yourself.
Originally posted by Wayne View PostOther wise you could buy this one as your own home, leave it tenanted and then in a few months buy another via a different bank (they won't know what LVR you purchased on).AAT Accounting Services - Property Specialist - [email protected]
Fixed price fees and quick knowledgeable service for property investors & traders!
Comment
-
Originally posted by Anthonyacat View PostBut... He is. The tenancy and any associated investment profits are incidental. In most cases in Auckland at 80% LVR you're looking at losses for a while anyway. You couldn't call it an investment if you're expecting to lose money for a few months then stop investing.
And what stops you borrowing for your own home, then tenanting it out and borrowing for another own home? Just because there are holes in the law doesn't mean the rest shouldn't operate fairly.
So this slows it down or makes it harder??
Comment
-
Originally posted by jappronz View PostHow is investing aiming for capital gains not an investment?
Investments pay an income and you get taxed on that income.
If you are being honest them I presume you would pay income tax on the 'investment' return - the capital gain?
Not really an argument for this thread.
Comment
-
I'm with you Wayne. There is huge risk to the bank, in terms of compliance, in providing a mortgage to a tenanted property as if it is is owner occupied. I am sure the banks don't have armies of people going around checking compliance post settlement. I would have thought this is exactly what the banks would insist on. If a tenant is in it when you settle it cannot legally be owner occupied.
Comment
-
Originally posted by Bobsyouruncle View PostIf a tenant is in it when you settle it cannot legally be owner occupied.
in which case the place probably needs to be "vacated" and tenants re-signed as of the date of settlement
may be a problem if they already have a fixed term agreement and they want to be nasty.Last edited by Keithw; 01-11-2016, 09:24 AM.
Comment
-
Maybe it used to be a long bow, but as prices rocket through the roof, home buyers, particularly FHBs need to be looking at creative ways to get into the place they want, so I think owners moving in with flatmates will become increasingly more common. Easy to do with a home & income type property, but also feasible in a bigger house environment.
As investors we get too used to being in complete control of our purchases, getting vacant possession, finding our own tenants, funding it ourselves. it is easy to forget that FHBs like Jamesnz will be panicking about taking on huge mortgages and losing sleep over how they will pay the mortgage, so pointing out alternatives can be useful.
Comment
-
You make it sound like buying a first home and getting flatmates in is a new thing?
Been happening forever - I did this 34 years ago.
What I find odd these days is people renting a 3 bedrm house for a couple and not getting anyone in. Then they find it expensive and can't get ahead.
Comment
Comment