[9ballParticipant@9ballJoin Date: 2007Post Count: 11]

May 14, 2009 - 10:49 am

As Terry says there are a lot of share trading programs or software out there. Definately do more due dilligence on these programs, try asking the same question on some stock trading forums like Hot Copper etc. Maybe you'll get a more specific response there. Buy a few Investment magazines etc and see whats around. Lots of crap out there.

Cheers,

9ball

[9ballParticipant@9ballJoin Date: 2007Post Count: 11]

January 1, 2008 - 6:59 am

Hi Richard,

The LOC is the way i am thinking of going but you have certainly explained the pro's and con's. I need to sit down and work out my best structure depending on my future plans. I will either PM you or set up a new thread so that i can get some further input on the subject. 

Thanks again.

9ball

 

[9ballParticipant@9ballJoin Date: 2007Post Count: 11]

January 1, 2008 - 6:49 am

Hi Trakka, Richard 

Thanks for your replies,  

It has been interesting discussing the subject and I can see that the purpose of the original loan would not be directly for investment purposes. This is “crystal clear “as you put it Trakka, and I would not attempt to try and claim it as otherwise, in fact it was Scottybe’s question regarding “how would they know the purpose”, not mine. I suppose I did hijack his thread and perhaps confused things slightly.  

As to the pro’s and cons of structuring further borrowing with a LOC secured against my PPR or using an interest only offset loan I suppose that subject may need further discussion. Depending on what my future plans are, I think that I may need to start a new thread as things may get complicated later on. Thanks Richard for your input on that.  

Cheers, 

9ball.

[9ballParticipant@9ballJoin Date: 2007Post Count: 11]

January 1, 2008 - 6:45 am

Hi Trakka, Richard Thanks for your replies,  It has been interesting discussing the subject and I can see that the purpose of the original loan would not be directly for investment purposes. This is “crystal clear “as you put it Trakka, and I would not attempt to try and claim it as otherwise, in fact it was Scottybe’s question regarding “how would they know the purpose”, not mine. I suppose I did hijack his thread and perhaps confused things slightly.  As to the pro’s and cons of structuring further borrowing with a LOC secured against my PPR or using an interest only offset loan I suppose that subject may need further discussion. Depending on what my future plans are, I think that I may need to start a new thread as things may get complicated later on. Thanks Richard for your input on that.  Cheers, 9ball.

[9ballParticipant@9ballJoin Date: 2007Post Count: 11]

December 31, 2007 - 8:46 am

Hi Terry,

Thanks for the reply,

Do you think i am doing things the right way in paying off the PPR first and setting up the LOC?

I will give you a call in the new year to discuss my finance strategy and see what products are avaliable regarding a LOC and using this to buy 2  further IP's.

Cheers,

9ball

[9ballParticipant@9ballJoin Date: 2007Post Count: 11]

December 30, 2007 - 8:35 am

What sort of fees do Agents/Property Managers usually charge, I've heard its around 8-9% for full management.
What about doing what Terry suggests, get the agent to find a tennant and set the thing up, what would the charges be for this?

Thanks

9ball

[9ballParticipant@9ballJoin Date: 2007Post Count: 11]

December 30, 2007 - 8:30 am

Time to change managing agents i think!!

9ball

[9ballParticipant@9ballJoin Date: 2007Post Count: 11]

December 30, 2007 - 8:28 am

Yeah, Adelaide Bank has added an extra 0.1% onto my loan.

9ball

[9ballParticipant@9ballJoin Date: 2007Post Count: 11]

December 30, 2007 - 6:44 am

Hi Ivan,

Thanks for your reply, i see the way you are thinking.
You want me to draw out the equity on the IP and use that for further purchases, that way i wont have the costs of setting up the LOC etc. And i can claim all the interest costs against my tax bill,seems perfectly sound, i agree.

However the aim of doing it my way is to pay off all my personal non deductable debt on my home first. I know there will be the costs of setting up the LOC and offering my home as security but i think i will be better off doing it my way in the long run. I want to organise a sound platform to work from and i think this is the best way to do it. Moving forward from here all my debt should be tax deductable. And i wont have a personal mortgage anymore.

I just wonder if the extra interest payments on the 1st IP that i used to pay off my PPR can be offset against tax, considering that the ultimate purpose was to create a tax efficient structure to buy further income generating assets.

Cheers

9bal.

[9ballParticipant@9ballJoin Date: 2007Post Count: 11]

December 29, 2007 - 2:02 am

Hi All,

just wanted to add a bit to the original post.

Lets say the original property (make it an IP) was worth a bit more and you refinanced it.
Instead of using the extra equity to buy a car you used it to pay off your PPR.
You now own your home outright and decide to get a LOC against your home to purchase further IP's. 

I know the original loan was used to pay off a PPR loan but the ultimate purpose was to create a tax efficient structure to buy further income generating assets.

My questions are
1. Can i claim a tax deduction on the extra interest payments on the first loan?
2. Am i correct in understanding that i can claim a tax deduction on the LOC interest costs?

Thanks for your help,

Cheers,

9ball.