NSW Client Purchasing Property Investment?

[Tripster]

Hi all,

I have an interesting case. Curious if anyone can help.

Ok, I am a mortgage broker, and I have a client who is wheelchair bound, and lives in a housing commission property, which has been modified for her needs.

She was looking at purchasing the property, however, her borrowing power won't suffice the expected cost. Therefore, she is now considering the purchase of a property investment (one bedroom apartment in Sydney, or property in QLD, not modified or suitable for her needs), which she can rent out for a few years and build some equity.

Apparently, if she buys a property that isn't suitable for her occupancy, then she can remain in the current housing commission property. However, she requires that clause or a letter or something in writing stating that she won't be evicted, should she proceed.

Does anyone know about this type of case? Anyone know of anyone in this situation!?

It's my first time having someone in this situation... thanks in advance

 

[Iamthelaw]

Should she proceed with the purchase of an investment property wouldn't there be a risk that she would no longer fall within the specified means test of qualifying for government housing?

I think you ought to direct your client to seek independent legal advice.

 

[Tripster]

Should she proceed with the purchase of an investment property wouldn't there be a risk that she would no longer fall within the specified means test of qualifying for government housing?

I think you ought to direct your client to seek independent legal advice.

Hi,

Thanks for your response. I have suggested they seek independent legal advice.

However, curious if there is a lawyer out there that actually is familiar with this type of case.

They are already paying the standard rent (not at a reduced rate - actually paying the same as other locally private rented properties).

It's not an issue of income, I believe it is an issue with owner a property.

 

[Hayder Shkara]

It may affect the rent she is paying. She will have to notify the Department of Housing about the purchase of the property and the incoming rent money she is making. Once this is declared, they punch it into their system and will tell you how much rent you will pay.

If they're not paying a reduced rate, then I don't see how they will be affected.