Hey guys,
I have one property where lived for years, but recently I have rented it out and I am now renting. Do I need to inform my bank that my property is an investment property now? Am I legally obliged to do so?
Given the current condition is there a benefit of converting it into an investment property for bank's sake ?
Please advice.
Of course will let the ATO know and have land Lords insurance. But is there a problem if I don't let the bank know
They would want to know but if you make your payments they won't bother you - unless they margin call if property prices collapse.
Google “occupancy fraud”
Ur land council will want to know too
Yes pay higher rates if not PPOR
Your home insurer would like to know too
If you want to pay a higher interest rate then tell your bank.
You are not legally obligated. Maybe contractually you are but that's not your question though
Please advice
Here we go again. F*&# me.
oops - ignore me
Hi Guys I was wondering a similar question to OP- so in terms of ATO(tax) he is doing everything right but not telling the bank its an investment property. Legally are we obligated to do that because at the moment changing my variable rate to a variable investment rate is a crazy option { I know I can claim that on tax :)}
Please help guide me as I'm thinking of making that change in the near coming future.
The different rates the bank advertise with their "owner occupier" and "investor" is just purely a product. Honestly if you were buying an investment property you can apply for a loan as an owner occupier to get the lower rate (that is assuming of course you can afford to service the loan without the declared rental income). Banks don't care, as long as they get paid every month
at tax time is it more of a benefit negative gearing wise to have the loan as an investment loan for claiming compared to owner occupier or is it going to be the same
doesn't matter, what matters is how much interest you're paying, if you're on an investment loan its likely your rate will be higher which means you'll be paying more interest
Disclaimer I'm not a financial adviser, just speaking from experience :)
No.
Come tax time, ATO will want to know though.