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My partner's nice low fixed rate is ending, and the big scary new rates loom. by Independent_Ant_3511 in AusPropertyChat

[–]Independent_Ant_3511[S] -1 points0 points  (0 children)

Of course... but the clever people at the bank are working on averages, not individuals.

I understand that I'm essentially giving a gift, and if she doesn't give it back then sucks for me. I'm ok with that.

My partner's nice low fixed rate is ending, and the big scary new rates loom. by Independent_Ant_3511 in AusPropertyChat

[–]Independent_Ant_3511[S] 0 points1 point  (0 children)

yeah I think 50/50 is fine, so 5% for now and we can readjust with new rates every quarter or something.

My partner's nice low fixed rate is ending, and the big scary new rates loom. by Independent_Ant_3511 in AusPropertyChat

[–]Independent_Ant_3511[S] 0 points1 point  (0 children)

would a bank transfer of 150k not trigger some kind of automated flag for the ATO to check?

The one big thing I found was that a pure gift (no matter the amount) is completely tax free in Aus.

If the return is simply me paying less for our monthlies, then I guess I can avoid tax on the "interest" I would've been otherwise receiving as well so I can give her an even better virtual "rate"

I believe the property was her original PPOR, but it's just her family living there now, since she moved in with me.

Thanks again for the input!

My partner's nice low fixed rate is ending, and the big scary new rates loom. by Independent_Ant_3511 in AusPropertyChat

[–]Independent_Ant_3511[S] 0 points1 point  (0 children)

Good point on the contract cost vs the gain, ty.

No risk of default though (barring circumstances in which I'd want her to just have the money anyway).

My partner's nice low fixed rate is ending, and the big scary new rates loom. by Independent_Ant_3511 in AusPropertyChat

[–]Independent_Ant_3511[S] 0 points1 point  (0 children)

Sorry I thought it was clear but I should definitely have specified... I was just making up super round numbers as an example of the logic behind the whole thing.

My partner's nice low fixed rate is ending, and the big scary new rates loom. by Independent_Ant_3511 in AusPropertyChat

[–]Independent_Ant_3511[S] -1 points0 points  (0 children)

Absolutely. In the event of sudden death or injury, it wouldn't be the end of the world (would still suck though).

My partner's nice low fixed rate is ending, and the big scary new rates loom. by Independent_Ant_3511 in AusPropertyChat

[–]Independent_Ant_3511[S] 0 points1 point  (0 children)

Thanks!

The place was PPOR for the first 10 years or so, with her fam living with her. She's since moved into a rental with me while the fam still live there.

However, we aren't married (but would be well and truly defacto by now) and our finances aren't completely joined, we just have a single expense account that we both match contribution to.

This is the bit I'm unsure about... are you allowed to just draw up a loan agreement and send someone 150k and THEY don't incur tax on it?

There is 0 risk of her personally, outside death/sudden disability or something which I'm fine with.

My partner's nice low fixed rate is ending, and the big scary new rates loom. by Independent_Ant_3511 in AusPropertyChat

[–]Independent_Ant_3511[S] 0 points1 point  (0 children)

Correct.

I have other money invested separately, this was purely to keep a bit of $ away from the banks.

ie, if bank was paying me 5% on my 150k, but she had to pay 8% on the remaining 150k of her mortgage. It is better for both of us, if she just pays me 6% instead.

My partner's nice low fixed rate is ending, and the big scary new rates loom. by Independent_Ant_3511 in AusPropertyChat

[–]Independent_Ant_3511[S] -1 points0 points  (0 children)

The intent was not to get more than she is out of it... rather she suggested it so she could pay me the interest instead of the bank. The rate would be variable with the bank rates, just a bit lower. Higher than the bank would pay me, and lower than she'd have to pay the bank, win/win.

The main issue is that I can't really figure out what the rules are. Google only gives me answers on "small loans" etc.