Hi all!
about to purchase my first investment property,
I know that the majority of investors use owner occupier loans to purchase property(for the cheaper rate), however I am unsure if this will affect what deductions I can claim back come tax time
Has anyone had any experience with this?
Also how can i make it less obvious to the bank and the ATO? ie send all mail to a PO box
I'm not a big risk taker and want to make an informed decision.
Any and all advice will be greatly appreciated!
wow. thanks. learnt 2 new things from you today in one sentence.
use a mortgage broker. just tell them what you want and most of them can make it happen.
Yeah I heard a lot mortgage brokers got suspended lately because of frauds.
+1 for what dragonindespair said. Speaking as credit advisers, we have seen first hand the intense scrutiny of mortgage brokers since the GFC by ASIC, CIO, the FBAA and the MFAA.
No decent mortgage broker would be willing to risk losing their licence (which is their livelihood), being heavily fined and/or going to jail (which are the penalties that are being handed out) to win a loan by falsifying an application. The only ones willing to break the law are the ones tied up with organised crime (loan fraud & money laundering syndicates are a major issue), spruikers (think Wolf Of Wall Street types) and incompetent brokers who are desperate.
Even if you are personally willing to break the law, you've got to wonder whether the risk of being involved with such types justifies the reward.
all bank should do audit each year ie ask every owner occupied loan holder to provide current driving licence and utilities bills under the property address. if they cannot, move them to investor type loan.
Why would the ATO care what loan you have? As long as you can prove it's an investment property there is no issue. If you get FHOG but don't live in it then you have an issue.
Not sure why there are all these messages about other considerations, but the ATO does not care how you finance the investment.
The source of finance or how it is marketed will have no effect on your eligibility or otherwise for a deduction.
Mortgage providers have requirements under their APRA licence to cap the number of investor mortgages, but this is irrelevant to the ATO.
+ve this.
Always comes down to this question "what was the purpose of the money?" Not "what type of loan do you have?"
Above 2 comments are correct.
The type of loan you have is irrelevant to the ATO re investment/OO.
The only thing is what you use the money for: purchasing an investment property or buying your home
I think that is a broad assumption that the majority of investors use owner occupier loans.
There are definitely good rates to be found for investment loans and in my experience, it is easier to get approval for investment loans as they look less at your income and more at the property returns.
not to my knowledge but i do know a friend working in the industry, if you want i will pass you over the number
Google occupancy fraud: http://lmgtfy.com/?q=Occupancy+fraud