WA Duplex or Green Title (PPOR) - Bull Creek

Hi,

Seeking advice from Experts here.

In the last couple of days, I was caught by a school teacher for not 'living' within a school catchment my child was enrolled in. After meeting with the school principal (who is really kind), he allows me to formulate a plan (to present to him) that I have all intentions to move into the school catchment area in the next 12 to 24 months.

I have subsequently spoke to my broker to work some numbers for me however I wish to seek advice from experts which options I should go with, as I am so reluctant to sell any of my IP in Perth as it is a raising market.

Current situation:
Current PPOR 3 x 2, worth $600K paid off.

IP 1 bought 2021 - small 3 by 1 villa in a block of three units (within school catchment). Bought $432K, real estate estimate $635K. Currently owe $300K.

IP 2 bought 2023 - 500sqm 3 by 1, green title, bought $457K, real estate estimate $544K. Currently owe $300K.

IP 3 bought 2023 - 500sqm 4 by 2, green title, bought $535K, real estate estimate $610K. Currently owe $480K.

IP 4 bought late 2023 - 680sqm 3 by 1, green title, bought $512K, real estate estimate unknown. Currently owe $550K.

Option 1:
Renovate and move into IP 1 when the contracts end but I am reluctant with my growing family.

Option 2:
IF I can find a duplex under $1mil.

Option 3:
Green title (minimum $1.2mil) but likely I unable to purchase unless I sell most if not all IPs.

Wifey has given clear instructions, we do not want to pay interest on the new PPOR purchase.

I read from another thread, is there an option for me to provide the bank with an affidavit that i will sell X number of IP in the next 12 months, so that they will lend me money?

I am unwilling to sell any IP at this stage before buying as its a raising market.

Greatly appreciated your time for your advice or suggestions.

 

Doesn't this mean the only option is 1?

 

I was thinking if there is a way I can refinance and extract $ from my current PPOR to be a future IP.

Sign affidavit for bank to borrow me more $ to possibly purchase option 2 (under 1 mil), with full intention to sell X numbers of IP so that I don't owe $ for the new PPOR.

Or am I dreaming? Thanks

 

What does "to be a future IP" mean? How would that loan have tax deductible interest?

Why would a bank even want to stretch themselves to make that happen? How would they make any money off this plan?

 

Rent in the catchment zone for a couple of years and go back to where you are now

 

Thanks heaps @thatbum and @Luca

Looks like short term pain, my only option to move into IP 1

 

I would have to move in to live, not just short term, in order to sleep soundly at night.
I have been really careful, selective with my tenants in order to retain all utility bills, yet I was caught - just shows I am not the type I can could get away with things

 

Are you saying if I managed to refinance my current PPOR and convert into an IP, the interest paid to bank is not tax deductible? Sorry I have no clue with this.
Thanks

 

Is current Ppor in both names or 1?

 

Both

 

Speak to your accountant. Could be options

 

Will wait to hear what my broker has to say, but in my mind I have also thought option 1 is the likely to avoid any stress

 

I think No.1 is your best option.

how did you get caught? I know it sounds doggy but maybe tell your kids that from now on we live at certain address if anyone ask?

on a side note, is it Oberthur? my two boys go to the same school as yours, we might catch up after school run. Haha.

 

As in my previous post, all base covered, with solid property manager and tenants, BUT didn't expect my Bull Creek property's neighbour's child is in the same class as mine.

And the teacher asked both kids, "so you guys are neighbours" after looking at the children addresses.....