A recent client has found his dream property. It is a small acreage and it is his absolute dream. He is a fly-in-fly-out worker, he has done this for the last 10 years. In the future, he wants to spend more time with his family and settle into a normal life at home. They were hoping to keep their existing house by converting it into an investment. They thought the rent from the investment property would help push up their borrowing capacity. Unfortunately, their borrowing capacity was not at a level for them to be able to purchase the new property and keep their existing house. Even thought they had the increased income from the rent the mortgage repayments were such an expense that they were not in a position to have two properties.
After discussing this with the clients during their appointment they decided they would be happy t o sell their house. During the actual appointment, we spoke to the real estate selling the property he was seeking to buy and during that time their offer was accepted. Now they have their own home already on the market and we are moving forward working on a loan solution. The home loan will be with a lender who will accept all of this F-I-F-O income. Some lenders can be very restricting with this type of income so we will need to pick our lender carefully.
They need to consider buying and selling simultaneously – things like settlement date, funds to complete the purchase (deposit) etc. If you are thinking about buying and selling at the same time, then check out our Simultaneous Buying and Selling Fact Sheet on the learn page.