TheCuriousMind wrote:
H

I do not have great deal of Equity in my current house about 40k which I am planning to cover the initial deposits for new PPOR.

Hi and welcome aboard.

Is the $40k actual or accessible equity?

If you don't mind me asking – what is the estimated value of the property and the loan amount?

Cheers

Jamie

Qlds007 wrote:

422 Sq M is fairly small so you will be limited to what you can build on such a site.

You should see some of the pokey blocks available in the new estates in the ACT these days – 300m2. Crazy.

Cheers

Jamie

Hi Catts

If it's the same broker from 6 years ago and you've already had a good experience than it's probably worthwhile sticking with them. However, if it's a different broker under the same franchise group then the service offering may be different as the experience is all driven by the person you're dealing with.

Cheers

Jamie

james.jj wrote:
Thanks, Jamie. Do u mean I shall use cash in offset account to pay off part of the PPOR loan first, and then split it to two separate loans, where one is still PPOR loan  but smaller amount and the other one is for the deposit of the investment house? But what the 2nd one looks like? Is it called LOC loan?

Spot on. The second…[Read more]

Only as good as the person you're dealing with.

Cheers

Jamie

james.jj wrote:
Current property is PPOR, what shall I do in terms of  ＂borrowing" you mentioned? 

Typing from phone so apologies for errors. 

Instead of using cash from offset to cover the deposit/costs on your next IP, you could look to inject those funds into the ppor loan and then re borrow as a separate loan split. That way, the d…[Read more]

Yep – a nice change. Probably more of a publicity stunt than anything else.

Cheers

Jamie

Hi James

Is your current property an IP or PPOR?

A cash deposit won't be deductible but a borrowed one should be.

Cheers

Jamie

Hi again

Whenever a new loan is originated there's usually going to be some fees involved.

If you're concerned, just ask your broker to spell out what they're for.

Cheers

Jamie

I couldn't see why not – it's the purpose that matters here and if the purpose is for investment then it should be deductible.

Cheers

Jamie

Yep, sometimes a change like this is considered credit critical by ANZ so a whole new app is required. If you're not changing the borrowing amount, you might be able to make the change in branch.

Cheers

Jamie

Technically it's possible (if the land could be sub divided).

You won't be able to sub divide a block that is part of a house and land package though. Those parcels of land have already been divided up.

Cheers

Jamie

b.a.1989 wrote:
He said these guys are geniuses and are the first in Australia to do this but when the family kept questioning he got pissed off and doesn't talk to us haters about it no more.

Is there a website or a link to further info about them?

Cheers

Jamie

There's nothing really wrong with CBA (providing they're the right fit for you) – their offset account is a bit of a pain but apparently that's due to change soon. 

Cheers

Jamie

Hi Shania

Welcome aboard.

Sounds like you've answered your own question.

If you think the property will go up in value and isn't costing you anything to hold onto – then I'd be inclined to hold onto it.

Cheers

Jamie

Just made two separate $5k claims with Youi for one IP – they paid out on one without too much hassle, the other claim was a bit of a pain but they eventually paid out.

Cheers

Jamie

That's what it sounds like – they might be using equity in existing property held elsewhere to cover the deposit/costs. Probably crossing it all up too.

Cheers

Jamie

Here's a great article from Medine Simmons that explains the benefits of using a broker over a banker. Obviously being a broker I'm biased – I haven't dealt with a lot of competent branch staff but there are some out there.

Cheers

Jamie

Hi Dave

Have you considered the southside – I know the entry price in the Logan area is much cheaper. Just not sure if it's the type of area you have in mind for this type of strategy but I remember seeing a run down, detached house in Marsden for low $200ks a little while back – would have been ideal for this type of thing.

Cheers

Jamie

Hi Chetnik

Interest only with an offset account works well under most circumstances but there's a couple of scenarios where it doesn't.

For instance, if you were bad with money management and were tempted to simply make the minimum interest only repayments each month then P&I could be a better option for you because it's a forced method of…[Read more]