Best Stratergy?

Hi there.
            New to the forum. I am excited about investing as i've finally got the misses starting to come around.

Heres what Im thinking; I have just renovated my kitchen and the property has naturally grown in equity. My approx value is $330K oweing $210K with $30k available in redraw. (Which i would like to keep available.) Sooooo, do I:
1-   Get a LOC on PPR keeping $30K in redraw to 90%LVR and use it as a deposit (paying LMI on PPR and possibly on IP)
2-   Refinance my PPR to have $30K in redraw and a 5% deposit for IP (paying LMI on IP mortgage)

As far as I'm aware both situations would allow the claiming of interest.

Thanks Heaps
Nathan

I'd opt for option 1 so as you can limit the amount of LMI payable.

Your broker/banker should be able to run through some scenarios with you on the cost/benefits of a few options.

Cheers

Jamie

Pass Go Home Loans Pty Ltd - Australia wide Mortgage Broker
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I would agree with Jamie on his suggested strategy.

Why not shoot Jamie an email and get him to work some numbers for you.

You be suprised as to the varying lending options out there and as a Broker he will be able to come up with something for to suit your needs and requirements.

Cheers

Yours in Finance

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Want to live of your rental income? 0-40 properties in a decade. Email me for a copy of my API Magazine interview

Deleted Post.

Yours in Finance

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Want to live of your rental income? 0-40 properties in a decade. Email me for a copy of my API Magazine interview

Hi All,

I have a PPOR property and i don't believe with the current market I have any substantial equity on the PPOR. However I have around 40k in my redraw. I have an interest only loan with offset account in my PPOR

Scenario

Investment loan (House & Land) $ 416k
Deposit Paid - $13200
Current Deposit saved $ 40k.

What would be the best structure I should look at for Investment Loan which would make it easier to diffrentiate with tax deductibe loan and non tax deductible loan. I am new to this and would really appreciate anyone's help / advise.

Thanking all in advance
Regards,

Melvin.

Hi Melvin

Ok what i would suggest is get the lender to cancel the redraw on your PPOR and then take out a new loan split for the same $40K.
This is to be an interest only loan and will have a separate account number and be easy to identify the interest.

You can then use these funds as deposit for the new investment property.

After all of this however just make sure you dont cross collateralise the loans.

If you are using a separate lender there will be no issues.

Cheers

Yours in Finance

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
Want to live of your rental income? 0-40 properties in a decade. Email me for a copy of my API Magazine interview