Owner-occupied property implies property that is owned by an individual with or without a mortgage. Any house that an individual has bought and uses only for residential purposes is considered an Owner-Occupied property.
While applying for loans the rates and terms offered by the banks depend on the type and purpose of the property an individual is willing to purchase. While applying for an owner-occupied mortgage the banks are more lenient on the rules and regulations. If you are a first-time home buyer, it is always better to purchase an owner-occupied property so that you can get the maximum loan serviced.
A lot of investors and financial advisors suggest that investing in a home is one of the best investment options among others. If a person in their early 20 buys home then by the time they retire, the equity in the house can make their net worth reach thousands of dollars. It is also a really good alternative to paying rent, as paying rent does not help you own the house but if you take out a mortgage you can call your house home.
Each country has its own policies on motivating its youth in buying a house and Australia is no exception. The Australian government has a lot of plans and policies such as first homeowners’ grants, deposit assurance, and lower interest rates for their citizens to be attracted towards purchasing a house.
In summary, buying a house is one of the easiest and simplest forms of investment with higher returns and safety.
Did you know it is easy to convert your owner-occupied property into an investment?
If you decide to move cities for better opportunities and don’t want to sell off the house you are currently living in, it’s easy! You can change the purpose of your owner-occupied house into an investment property and start generating income from the same property. Then you can buy a new house in your desired city and make that one owner occupied while keeping your existing property as an investment. This will also help a great deal in your borrowing capacity as the rental income will also be calculated.
You can do this by informing your lender about the intentions so that they can finance a new contract with adjusted rates and features. If the lender is not informed timely then it might lead to charges and fines or even occupancy fraud.