Renting out my PPR. Advice needed.

Discussion in 'Property Finance' started by Essexboy, 10th Nov, 2018 at 9:23 AM.

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  1. Essexboy

    Essexboy New Member

    Joined:
    24th Sep, 2017
    Posts:
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    Location:
    Geelong
    Can anyone help me here please?

    My situation is as follows. My wife is sick and we need to move closer to her family pretty quickly.

    I want to rent out my home. It is positively geared. I will be renting near my wife's family.

    Do I have to tell my lender? I have had to quit my job to care for my wife and we are living on one income. Once I get near her family I'll be able to return to work. I am worried that our lender has the power to say no to me renting our place out forcing me to sell.

    Will I have to change to an investor loan? Which I feel I won't be able to do now as we are now only on one income.

    Any advice greatly appreciated.
     
  2. Marg4000

    Marg4000 Well-Known Member

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    Qld
    Sorry to hear you are in a very stressful situation.

    Your lender won’t stop you renting, nor force you to sell.

    Just go. Whether you tell your lender or not us up to you. Basically just keep up your payments which will mean you don’t bring attention to yourself.

    Hope things go well for you.
    Marg
     
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Typically a loan conversion from one use to another is NOT a credit critical process, ie no new application

    ta
    .
    rolf
     
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  4. snoopy

    snoopy Well-Known Member

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    Sorry to hear you are going through some tough and stressful times.

    It sounds like you will be better off once you move to near your wife’s family and you would get a job in due course.

    No need to tell the bank as long as you can continue to meet your repayments.
     
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  5. jazzsidana

    jazzsidana Mortgage Brokers - Investment Savvy Business Member

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    Melbourne
    Family situation is more important then notifying the lender (something that can be dealt with later)...

    However, once things are under control, will be good to get valuation done on it for CGT but again that's super low priority. Family first ..

    Good luck and hope things go back to normal soon!!..

    Cheers,
     
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  6. Stoffo

    Stoffo Well-Known Member

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    Get an Aus Post mail redirection.
    Doesn't cost much, and the bank wont know any different
    (Aka, you won't have to notify them of change of mailing address)
     
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  7. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

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    It might be a breach of contract not to inform them. But that doesn't mean you should.

    Also a valuation may not be necessary if you use the 6 year rule
     
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  8. Essexboy

    Essexboy New Member

    Joined:
    24th Sep, 2017
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    Location:
    Geelong
    Thank you everyone for your great advice and good wishes. It is much appreciated.
     
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