Catalyst wrote:
Where does the rent go into? Where do you pay the bills from? Where does the interest get debited from?

offset account

Cheers

Jamie

I agree with kong, sounds like a good setup to me.

Cheers

Jamie

goldies wrote:
Can we offer to pay for the bank reval? i dont want to get one completed privately as they are not worth the paper they are written on. I would like to use to equity to purchase another so it would benefit the bank anyway…

Yeah you can.Brokers can organise CBA vals through valex. We can then use that val for the application.CheersJamie

Jameswood wrote:
Thanks Michael …  So It sounds like it is feasable then ……We were a bit unsure thanks

It should be possible but it doesn't sound like there's much equity. Did I read that right? $125k loan on a $150k val?CheersJamie

KateandTony wrote:
Hi all. As you know I am thinking of buying an investment property. Should be no issues with equity or serviceability. But I am trying to work out in my head the steps I need to take. Do I find a property then take it to an accountant to work out how much it will cost me per week (or do this using a model myself). Do I then…[Read more]

oscar1 wrote:

Jamie M wrote:
Use an "offset" instead of a redraw and you won't have any tax deductibility issues.

If I were to put the 'extra' funds from the higher loan amounts into an offset account then I would definitely have tax deductibility issues as I would be mixing with the personal funds already in my offset account.

Yep, you…[Read more]

bucko666 wrote:
Thanks guys. This might be a bit of a silly question, but here goes; A broker organised the original Westpac loan for me. Should I speak to him about changing ?? Or will his commission be reduced or cut by changing providers ?? I don't mind if he organises the new loan for me If I do go with ANZ, but I want to be confident…[Read more]

oscar1 wrote:
My broker is proposing that, rather than borrowing the exact amounts that are outstanding on the existing loans, I borrow slightly higher amounts, pay out the loans + fees, then keep the rest available for redraw.

Use an "offset" instead of a redraw and you won't have any tax deductibility issues. The PPOR loan should also be set…[Read more]

What about Canberra Detached house with a backyard that is too big. The lawn seems to grow as I watch it.CheersJamie

Ch4rlie wrote:
Just got off the phone with Suncorp, they have a package with a discounted variable at 6.55% and their 3 year fixed rate is 5.99.Sounds pretty good to me, any thought on Suncorp as a lender?

I've got a big lender that will match the 5.99% 3 year fixed – just have to ask them nicely As the other guys mentioned, we certainly don't…[Read more]

Qlds007 wrote:
If you can substantiate the regularity through past Tax Returns it shouldn't be a problem.

Exactly my thoughts – a couple of years of consistent tax returns should do the trick.CheersJamie

Hi Chelkin

It can be frustrating.

There’s not quite enough data to provide an accurate response. Perhaps try out one of the brokers that frequent this forum for a second opinion and see if they can get it done for you.

Cheers

Jamie

Hi Kate and TonyThe biggest issue with new properties is that you generally pay a premium and you can't add value through renovations. I'm not sure how the company you've mentioned operates but if their profiting from the sale of the property then you'll need to work out whether that's at your expense.CheersJamie

That's an interesting one – I wouldn't have thought so but best to put it to an accountant.CheersJamie

I don't know how to edit posts but I meant to write "With H&L you can't do much to improve the property and add value"CheersJamie

Hi Kate and TonyThere's no wrong or right yield to aim for.In general terms, properties that offer higher yields may not be so great on the capital growth side of things and vice versa.Rental vacancy data is in the back of API and YIP magazines (check out your local newsagency) – I think some of the websites here might have that info as well -…[Read more]

Nice I spend a packet on Bunnings gardening stuff. I must admit though, when plants die it's usually a result of my neglect rather than their quality.CheersJamie

Qlds007 wrote:
Nope sorry lolCheersYours in Finance

Haha nice. Call Richard. He owns an IP or two CheersJamie

It all comes down to the "purpose" test.Just think – "what will the funds be used for?"If they're going towards an IP – then they're deductible. If going towards a PPOR – then they're not.CheersJamie

Hi there

There are larger second tier lenders offering similar rates on the three year fixed.

Cheers

Jamie