Shape wrote:
.so you can use a PPOR to borrow money on a IP and still have it 100% tax deductible under a normal structure + loan…doesn't need to be trust etc… Regards Michael

He's not buying an IP though – he's buying a new PPOR and wanting to covert his current unencumbered PPOR into an IP…..too many acronyms CheersJamie

Hi MikeI own both types – and I have a preference towards option 1 type properties in Canberra.Main reasons being the large land content and the ability to add value through basic, cosmetic renovations (which you will be able to depreciate). You could also look at extending – there could even be scope for sub division if the ACT govt. changes its…[Read more]

Hi MattIt's possible –  but it will involve costs as you'll either need to sell the asset to a new entity (i.e a trust) or transfer ownership to a spouse (if possible). Best to speak with an accountant about your options.CheersJamie

Hi FredoThe last time I increased my cc limit they wanted to see all sources of income – including rental statements/lease agreements.CheersJamie

Hi MattWelcome to the forum.You can certainly borrow against your existing PPOR to fund the deposit/purchasing costs on your next PPOR.You can also convert your current PPOR into an IP.However, in terms of tax deductibility – only the loan securing your current PPOR at present will be deductible (that's assuming you still have a loan on this…[Read more]

v8ghia wrote:
Hi Kane – you're spot on.It is an absolute joke. The only guarantee out of the whole farce is that choice will make a lot of commission – as for any lender that 'wins' there is no g'tee they would get one of them, and each one has to be done individually anyway. I think CHoice have finally confirmed what most people knew all…[Read more]

Qlds007 wrote:
Jamie is an excellent young broker (maybe not as good looking as me) and can certainly assist you.

Haha, I just read this post – I'll take it as a compliment…..the broker part anyway CheersJamie

Hi againWhy do you need to sell?I'm not sure of your borrowing capacity – but if you have sufficient equity, you may be able to use this equity as the deposit/purchasing costs for your new PPOR. It's important that when tapping into this equity that you set it up as a second loan split (so you can distinguish your deductible debt from the…[Read more]

Hi property seeker

It depends on what your wanting to achieve.

Are you looking to purchase another IP? If so, at what value?

Cheers

Jamie

Hi DragonflyzPersonally, I'd set it up as interest only with an offset and place all of your savings into the offset account. Why? Because it achieves the same result but also provides flexibility. Five years is a long time – you may change your mind and decide to keep this as an IP and buy another PPOR – hence the flexibility.CheersJamie

Terryw wrote:
Why not?High yields with good CG potential. At prices like that they would have to go up. Just get landlords insurances!

I must admit, when I read the "what can I buy in Sydney for $600k" title, my first thought was three IPs out west. Insurance is definitely a must – as is a good property manager.CheersJamie

Are either of the properties tenanted?
Is one structurally better than the other?
Which one will cost more to renovate?
Hold old is each property?
What do locals think about either area?
Can you buy both?

Just a few questions off the top of my head that I’d be asking.

Cheers

Jamie

Homeside and BWA will do a 90% lend without gen savings – should be the same rate.CheersJamie

Hi again Sweeny

With the $100k cash out – you just need it to be set up in a way so as you’re not paying interest on it until it’s used. This can be done via Terry’s method above, by using a LOC or placing an offset against the loan and transferring the funds into the offset.

If you only use $80k for investment purposes – that $80k will be…[Read more]

Gotta love credit scoring Best advice is to simply deal with the one broker/banker that you're comfortable with – and ideally it should only result in one application being submitted.CheersJamie

Ahh that makes sense. I’ll let others answer that one – I’ve never been to a seminar.

Cheers

Jamie

Yes.

However, if the deal involves LMI and requires you to demonstrate 5% genuine savings then you’ll have to provide proof that you had the 5% kept over a period of time (ie it wasn’t gifted). However, there are some lenders that will do high LVR loans without genuine savings.

Cheers

Jamie

Hi Kd

Welcome to the forum.

This isn’t a seminar – just a forum for property investors to share knowledge and experiences.

Cheers

Jamie

Hi James

Nope, haven’t heard of him.

Cheers

Jamie

lyh14 wrote:
If Bank A allows me to draw up to $336k (80% of $420k) of LOC equity from my $420k PPOR house, I can put down a 20% deposit + stamp duty+ other fees (About $90k) for a $350k investment house. I then have $246k ($336k-$90k) left to play with for other house deposits hence I can buy more houses (Obviously subject to how much I can…[Read more]