Moving out of PPOR and into shared accommodation

Hi,

With the tightening lending criteria and serviceability, just seeing if some of the investors here in PC considered/ have moved to a private shared accommodation arrangement and rented out their PPOR to improve their serviceability to move loans to a big 4 bank or use this strategy to obtain another IP.

For me, it was out of the question for me to move out of my PPOR, but now seriously thinking of moving into a shared accommodation for 6 months in order to move some loans to a big 4 and if possible be in a position to build a granny flat or two to improve my cash flow.

 

Yes, some of my clients have, and others moved back with parents too. The effectiveness will depend on how much is owed and the rent received (and rent paid)

 

I have moved in and out of my properties, not for financial reasons though.

I am currently in a share-house. It's great. We have house-mate activities, and the odd house party etc. #instantfriends

Some of my share-accommodation tenants (via my business, not where I live) are couples also. They are having the time of their life, a few just came back from a trip to Melbourne together.

Depends where you are at in you life, and your ability to live with other people. I've had plenty of people move out because they can't deal with someone leaving a water bottle on the coffee table for A WHOLE WEEK!!@$%#@$%

If you set yourself up right you can live in a great place for cheap. I live in a freshly painted, NICE terrace in Surry Hills. I only pay $130/wk for a 4*5m bedroom with fireplace, private balcony, and car park. I did this by negotiating a good deal on the whole place, furnishing the home affordably to my taste, and leasing out the other bedrooms at market price.

I had capital, income, and risk profile to do the setup and handle an empty home for a month.

The questions I'd ask are:
1. Am I emotionally open to living in a share house;
2. What will the real impact on my borrowing capacity be. Call a broker and throw some figures at them, IP rented for X, I rent for Y, what can I borrow?

 

With $150 as the nominal rent expenses... If you can rent out your PPOR for a decent amount + NG then your servicing is going to improve.

 

Very good points raised, and have had some wonderful experiences of sharing a place with share mates during my uni days. If I do go ahead with the move, I think I could accomplish some of my financial goals going forward.

By checking out some of the prices and available places on offer, some smashing choices to select from.

Especially with some of the property investors who have loans with Liberty and Pepper, I can see an increase number of people moving back in with parents or shared accommodation in order to move loans, sustain current holidngs or to move forward.

 

Helped a mate set up a home.

She and a friend live there. 1 large room each rent free. 100m from beach south Sydney.

AND they make an extra $15-20k profit. That's not a bad setup.

 

Fantastic strategy, but err, you're not living there with two women and extra cash? I'd be tinkering with that set up lol.

 

Lol.

I'm sure you can conjour up something more elaborate.

Pretty sure a housemate (pre-meeting my lovely partner if she's reading this), was attempting to proposition me few years back. Room in exchange for no cash... it was very subtle.

 

Quite easily. But I know my limitations.

Whoa...if it was me...but wait, how subtle? Was it a smile and a wink of the eye or something undeniable?

 

With my limited, yet expressive vocabulary, I may still create too graphic an image. @Simon Hampel may banish me to underbelly of Property Chat.

 

Say no more NHG. I'll just go to one of my favourite websites to search the answer.

 

I moved out of my ppor into a shared house years ago. It's a good setup because I have my own bedroom, bathroom and there are 2 living areas. This is a good setup for me because I need my own space.

 

How much is a brothel licence?

 

Start an 'escort' agency instead

Or how about "The Girlfriend Experience"