Scrutiny on expenses

Hi

In general I transfer my most of my salary to my family (who has property) on a monthly basis since their account earns higher interest (offset).

Ive been told different stories that even though the loan application is in my name and I have no outstanding loans, I need to give the bank statement of my family member despite them not being on the loan, as well as written guarantee that the cash which is mine (around $700k AUD) will be gifted.

Is there a way around this since ? I was suggested by an investor friend of mine that I should probably stop transferring for three months; and then at the end of three months put the cash into my account in order to get around this issue to prove genuine savings (even if it comes in on the last day).

Any ideas if this seems right?

 

An easy way around it is to get them to transfer the funds back into your account 3 months before you put in your application. If you're saving into someone elses account, it's not counted as gen savings. That said, if you have a $700k deposit, gen savings is unlikely to be a concern unless you're buying super expensive property.

 

Thanks - is it a requirement ot have the $700k upfront first? What if I put it in the last day?

$700k for three months earning almost no interest is forgoing almost $8k, not a small chunk of change

 

would putting $700k in the last day + written / signed statement from my family member the cash is a gift be acceptable? any lawyer need to sign / witness this?

 

Is it a loan or a gift to your family member?

 

its a gift (to/from)

 

Risky.

A statutory declaration plus proof of funds may suffice.

 

Usually banks accept gift letter and then require funds to be available at settlement. Will depend on the lender though, some of the smaller ones look at funds to complete more closely. So you can keep the funds there and move it back prior to setts, but will need a gift letter to confirm the funds are available to use for your transaction.

I’m going to assume genuine savings isn’t an issue at all, especially with that deposit (unless it’s an 85%+ lvr Loan and not medico).

 

On a different note, lot of cash you have..

High time to invest!!!.. Offset Account will only earn so much interest..

Lot of properties esp. in Brisbane and Adelaide with right zoning will drop you 4 plus% net yield and good chance of capital growth/future development ...

Cheers,