I thought Sydney's second airport was going to be in my backyard CheersJamie

Hi thereOTP has some risks that need to be considered – the most important being the ability to finance the deal.Given that the lag time between "exchange" and "settlement" with OTP is quite long, you can't apply for finance until closer to the settlement date. At that point, if there's a change in your circumstances that prevent you from…[Read more]

Hiya KrisAlways good to see another Canberran on the forum.1. Yes and yes2. No, it doesn't need to stay there for tax purposes. I wouldn't use "cash" for IP purposes though. Instead, I'd use your equity loan because the interest is deductible. Yes regarding the way interest is calculated.3. Yes re the $160k – I'm not sure if your current lender…[Read more]

wezwaz wrote:

Jamie M wrote:
Hi WesI'm a little lost with your post but if you're 100% sure your PPOR will never become an IP, then pay down the principle on your PPOR and borrow against it when you're ready to invest. CheersJamie

OK Jamie, let me have another go and in reference to Cameron's reply also…Currently I have a 15 year P&I loan…[Read more]

Hi KrisYikes – 4 years of reading and this is your first post! It looks like you've absorbed a lot of the info and have a sound understanding of how to structure the deal.If your current PPOR is going to become an IP down the track, then please convert to IO with an offset now. There's no point further reducing this future deductible debt – your…[Read more]

Hi WesI'm a little lost with your post but if you're 100% sure your PPOR will never become an IP, then pay down the principle on your PPOR and borrow against it when you're ready to invest. CheersJamie

bella12 wrote:
Thanks Jamie.  I am giving myself around 6 months target for my next PPOR.  I think the loan split you explained was what the broker proposed.  Thanks again.

No worries – I hope it all works out. CheersJamie

HiyaWhen are you buying the next property?The current structure would be:Loan 1: Current loan converted to interest onlyLoan 2: Equity release for new PPORLoan 1 will be deductible once your current property becomes an IP.Loan 2 won't be deductible because it's being used towards your new PPOR.If you didn't split the two loans out like this – it…[Read more]

Hi BellaIf your current property is going to turn into an IP then switching to an interest only with offset product is a good idea.If you are going to use the equity in your current property towards your next, then it's a good idea to access it now. I would set this equity release up as a second loan though – so you can distinguish your future tax…[Read more]

Hi there1. You can structure the finances in a way that avoids using your entire home as security for your investment property. It's unlikely the bank will structure it in this way for you – it's in their interest to simply cross collaterise the two properties.2. You don't ask them for a rate – they tell you what's on offer from their ONE bank.…[Read more]

Vivy wrote:
Myself and my son are both high-income earners. Myself $110k pa and my son $97k pa. BUT … I don't have any savings, and my son has only been in his current job (mining) 3 months. Is it possible to get a loan without savings? I know there are alot of creative ideas out there … any suggestions. Or given our two incomes, could…[Read more]

It might be time to cross over to the dark side Terry I know how much you love apple products I post from the iPad with no dramas – accept the odd auotcorrect typo.CheersJamie

Hi Bec

Richard Taylor (QLD 007) will be able to help with that one.

Cheers

Jamie

I always recommend James from House of Wealth for my Melbourne clients.

Cheers

Jamie

gibbo1 wrote:
I think Jamie's first comment in this thread sums up a few people's views on the current broker…run from him

Yep – it's clear they don't quite understand simple investment structures.  The good thing is that Franky seems to be a quick learner so I'm sure he/she would have worked this out by now.CheersJamie

Here's a copy and paste from somersoftLender Change  and New SVR ________________________________________ ANZ -.37% 7.05% BOM -.41% 6.99% CBA -.40% 7.01% ING -.30% 7.02% NAB…[Read more]

Hi Franky

Do a search on “cross collaterisation”

This is what your current broker is trying to do to your loans.

Cheers

Jamie

PFrankyX wrote:
Thanks for your comments, this is becoming clearer with each input. PPOR Loan 1 already has an offset set up against this loan. From a financial view Jamie, why would i consider my PPOR loan as I/O? For what benefit will this provide in the new or distant future, keeping in mind that i do plan on adding a new property/ies every…[Read more]

Hi HeathYep – if an offset is going to be set-up against any of these, it's the first loan.I'd even go a step further and consider setting up loan 1 as IO as well.I've written about this structure hereCheersJamie

PFrankyX wrote:
So essentially what i am wanting to do is reduce as much of my PPOR P/I loan but reallocate the available equity to an investment loan. Therefore over time i consistently use my PPOR for equity and redraw and keep topping up the investment loan for a deposit on the next property??? But in reality, that investment / equity loan…[Read more]