12 Feb 2022

Can A Family Member Live in a Second Home?

Family Member and Second Home

Australian homeowners purchase second homes for many reasons. Some individuals become investors. Therefore, they build a portfolio of properties. Others use the property as a vacation home. Some parents purchase a second home and gift it to their children. 

A family member can live in a homeowner’s second home. For tax purposes, they must place a classification on the property. The homeowner lives in their primary residence. A member of the family can live in the second home and classify it as a secondary residence. The classification determines the amount of taxes the homeowner will pay. Plus, it determines the tax exemptions they can claim per property.

Purchasing a second home makes financial sense for many individuals. Gifting it to their children helps them get a good start. Eventually, they can purchase it from their parents. Sometimes it makes sense for the parents to purchase the property for their children outright. As current homeowners, they will obtain favourable mortgage terms and home loan rates

To understand the implication of owning a second home, homeowners can consult with Mortgage House loan specialists. Our specialists evaluate mortgage applications promptly and search for the best loan products. Plus, they can offer additional guidance. 

Family Member and Second Home Conclusion

Once a homeowner purchases a second property, they can decide how to use it. A family member can live in it. For tax purposes, they must pick a classification. Mortgage House loan specialists can offer guidance and home loan product information. Contact our team today.

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