Yes, I presume I would be up for all the costs I was hit with buying our PPOR? Are purchasing costs tax deductible? Come to think of it I would be up for LMI if I borrow 90%. Maybe a deposit of 15% would be better.

Hi Shahin,

That's great, thank you for clarifying that for me.

I noticed you assumed I would be placing a deposit of 20% against the IP. I would be looking to put down 10% as I need to absorb purchasing costs in the 40,000 equity in my PPOR.

Is 10% seen as too small?

Hi Shahin,

When you are referring to restrictions on postcodes, do you mean that if the property is in a particular postcode the lender may refuse the loan?

How would I structure the loan? The way I see it is I would release equity in PPOR to cover deposit and purchasing fees of investment property. I would have both loans with the same…[Read more]

Hi Shahin,

It is located in NSW (Hunter Valley).

I calculated equity by finding 80% of the difference between what the property is worth and what is owing on it.