No worries at all.

Is your current property a PPOR or IP?

If an IP – do you own a PPOR? or do you intend to own one at some point?

Cheers

Jamie

Hi Firewater

Nope – not advising that you pay down any sort of percentage.

That was just an illustration of how equity can be accessed.

What is your current loan amount?

What is the current value of your property?

Cheers

Jamie

Terryw wrote:

RPI wrote:
One old boy I know, who has 10's of millions of commercial property, probably more.

His advice was to always pay down one.  Your own house first, then your oldest IP and so on.  This guy has been buying investment property for over 50 years.  The problem is the tight old bugger won't spend any of his money.  He'll be…[Read more]

Hi Firewater

Generally speaking, a lot of lenders will allow you to access equity up to 90% of your properties value.

So if you had a property worth $100k.

On that property, you had a loan of $60k.

Then the bank agrees to let you take your loan up to 90% of the properties value – which is $90k.

You have released $30k in equity ($90k minus…[Read more]

DOUGADCOCK wrote:
id love to read this article mate, where can i find it

Hi Doug

Heres the link.

Cheers

Jamie

BigCubez wrote:
If you have a PPOR mortgage or any other personal debt, you would want to have an interest only loan on your investment property so that you can pay down your non tax deductible debt first. Jamie M has written an article on the subject that you might want to read. I spent weeks trying to explain to my girlfriend why an IO loan…[Read more]

We carpeted our last 3 bedroom IP for $2.7k using bunnings carpet and installation. Can't remember the type of carpet but it looks nice and modern and is durable.

Cheers

Jamie

Hi Doug

Where are you looking to purchase? You might be able to get some recommendations for BAs on the forum.

Cheers

Jamie

cs_rlewis wrote:
Yes this is an investment purchase. I have no other debt other than my other investment property. No credit cards, no car loans, nothing. Im currently renting.

OK – so what's the rationale behind P&I on an IP? Not saying it's a bad thing – but is there a particular reason as to why it's being set up this way? IO with an…[Read more]

cs_rlewis wrote:
Yes my broker thinks the loan should go through. He said paying principal and interest initially until the loan goes down, and then later i can fix the rate. 

Is this an IP purchase? Do you have other non tax deductible debt? If not, do you plan on having non deductible debt like a PPOR loan in the future?

Cheers

Jamie

Hi there

I'm not sure if it's possible or not – a call to the council on Monday will be your best bet.

What's the purpose behind the request? If you just want to know the quarterly costs – ask the REA if the vendors would be happy disclosing.

Cheers

Jamie

I'm with the other guys – it would make sense that it's deductible. At least a portion of it anyway. 

Like Terry said – if in doubt, consult an accountant first.

Cheers

Jamie

90% with a small telco default shouldn't be a prob.

Get Richard onto it for you – he will sort it out.

Cheers

Jamie

Hi and welcome aboard.

There's been quite a few threads on this.

https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4323940

https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4337391

https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4328614

Cheers

Jamie

Hi guys

Not enough information to provide a sensible reply.

Everyone's situation is different – and there's heaps to consider when determining whether ownership should be under a structure other the your own person name. There's also different entity types to consider.

So many people want to purchase within complex structures but have no idea…[Read more]

Richards up in Brisbane – QLD007 on this forum.

Richard Taylor – Director
Taylored Financial Solutions
PO Box 5217, Kenmore, Q, 4069
P: 07 3720 1888  F: 07 3720 2830

Cheers

Jamie

Like Terry said, doing it that way is going to increase your non-tax deductible debt whilst reducing your tax deductible debt. Not a good outcome.

Think of it this way.

You have a $100k owner occupied loan.

You have $30k sitting in the offset account.

So you're paying interest on $70k.

If you took that cash out to fund an IP, you'll start…[Read more]

Hi Rebrab

Best to get a legal person to go over the contract before committing to anything. There's a lot of money at stake – best to do it right.

Cheers

Jamie

Not sure if it helps or not – but we've got a tool on our website that helps crunch the numbers on a deal. It's not as flash as the paid software out there but it's free.  http://passgo.com.au/investment-property-analysis-tool.html

Cheers

Jamie

I'd be keeping them for sure. Like Scott said – something needs to be there anyway. BIR's are much better than standalone ones IMO.

Cheers

Jamie