Couple Buying a PPOR with Unequal Deposit Contribution

Lreddwarf on 09/12/2016 - 18:41

Dear OzBargain community,

Me and my partner have over 300k that we would like to (partially) use as a deposit for a home mortgage.

Problem is that while my half is quite liquid (mix of cash and shares) , my partner's is mostly tied to an overseas investment property which is getting built.
My fear is that a bank or a broker would disregard my partner's asset because it realistically cannot be quickly converted to cash usable as deposit.

Few questions for those of you with any experience in this matter:

Worth considering a bridge loan while waiting for the IP to be sold ?

How would you structure the ownership of PPOR ? Would a 50/50 be too risky if partner only contributed 20% of initial deposit with the understanding (promise) that they would equalise to 50/50 once IP sold ?

What if I decide to establish the ownership to match deposit contribution (20/80 deposit = 20/80 ownership) would it be easy to change to 50/50 ownership at a later stage ?

Any help would be greatly appreciated

Financial

Comments

  • mskeggs on 09/12/2016 - 20:17

    Why the urgency? Wait for the cash to be available.
    As for division of assets, how do you structure the rest of your life?
    What do you think the family court will decide should you part ways with unpleasantness?
    Judging from your question, you might be surprised at how ownership of shared assets is usually settled.

    • reddwarf on 09/12/2016 - 20:47

      The urgent part comes from the fact that we have been looking for a while and I want to be ready when the perfect house opportunity comes around.

      At this stage I'm afraid that we might not have the necessary deposit if only my part is to be considered
      It has been a suggestion of mine to initiate the sell the IP and repatriate the money to Australia to make it more available for a possible deposit.
      But the IP is actually accruing in value at a very fast pace.

      Lifestyle wise I'd aim to have things as fair as possible.
      One contributes to deposit and repayment what they can

      I'd like to structure this so it may not however unlikely turn into a bad lesson. Trust is not an issue but at one point you gotta cover your ass a bit :)

  • Donaldhump on 09/12/2016 - 21:40

    Look up resulting trusts

  • CacheHunter on 11/12/2016 - 11:34

    An Australian bank will generally only accept security in Australia - if you default they don't want to be navigating foreign legal systems to get their money back, as well as the risk that exchange rates might Reduce the value of the asset. If they do recognise the foreign property, they will probably want to charge a higher interest rate to compensate.

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