Just on ANZ, the ANZ Simplicity product isn't eligible for any discounts, you're thinking of the Breakfree package which is available on the standard variable rate. Also their fixed rate products only allow a certain set amount for extra repayments before penalties kick in, and there is no redraw facility until the fixed rate period ends, and…[Read more]

Doesn't the tenant know that summer is coming up? Next they will complain it's too hot and want cooling in every room.

My opinion, they aren't committed to a long term lease, why should you commit to them? Like others have said they saw beforehand what they were getting into, no use whinging about it now. Tell them to sign a 12 month agreement at…[Read more]

What you have to remember with pre-approvals is that they are not foolproof, and depending on the situation and lender may be worthless.

For example, getting a pre-approval online by punching numbers in isn't worth a grain of salt. Neither is going to a lender who only credit score.

Others whose credit team see the file and do a bit of an…[Read more]

Basically as Derek put it, a negatively geared property will reduce you taxable income at the end of the financial year, and a positively geared property will increase your taxable income at the end of the year.

The total loss or gain is not actually how much tax you will get back or have to pay. That all depends on what tax bracket you are under…[Read more]

Ha ha, almost got caught out myself Jamie.

When I first clicked on the link and read the first post I thought ANZ were out of their minds. Then I saw the date of the post.

Cheers

Tom

Correct, interest can only be claimed against the $218K. The $50K will be non deductible debt.

You need to make sure the two loans are separate so that you don't have a mixed purpose loan.

Cheers

Tom

Economists predicting the share market are the worst. Never ever take what they say into account, they are hopeless.

Being an economist and meteorologist are the only jobs I know where you get paid a mint, can stuff things up regularly and have no backlash against you.

Cheers

Tom

Terry, as a hypothetical what if the money was paid back into the PPOR loan (which is 100% investment from what has been advised), and withdrawn at a later date. No mixed loan from what I can see, so should be fully deductible?

Cheers

Tom

From what I recall, it's the person whose name is on the title who gets all the benefits. So if the wifes name is the only one on title, but the loan is in two names, it won't matter as all income and expenses would be attributed to the wife.

Cheers

Tom

Don't know how your investments are structured, but if the investments are P&I repayments, changing to IO will free up some cash which can be diverted elsewhere.

Cheers

Tom

Why are you against your wife's name on the mortgage?

Cheers

Tom

With normal personal funds in an offset, this would be okay (repay, then withdraw with a separate account), however I'm not sure what the scenario is with borrowed funds. I'm sure Terry has a better idea.

Also why would you repay it into the IP loan and not the PPOR loan? By repaying it into the IP loan you are losing…[Read more]

When you look at suburbs to invest in, you need to look at the wider picture and see what they offer.

Are there enough roads to handle traffic flow, does it have suitable public transport, schools, shopping centres, etc? If not, are there any master plans to expand on these? This goes a long way to securing capital growth in the future.

Likewise…[Read more]

paradigmv,

Why didn't you leave any excess borrowings undrawn in the equity loan instead of moving it to the offset account? Someone can correct me, but as funds have been moved to the offset account, the initial purpose is not for investment purposes, so any future interest in not tax deductible.

Cheers

Tom

Hi interested,

The tax deductibility will only apply to the property that is rented out, therefore if you move into the new property, the interest on the current loan of $255K will be deductible, whereas if you rent out the new property, the loan on that will be deductible.

The reason people pay interest only on investments is that they like to…[Read more]

Personally I'm not a fan of that area, however you are limited with your budget on where you might be able to afford.

In the end, even though you are looking for future capital gain you will be living in the property long term, so you will need to be comfortable with where you decide to buy and like the area.

Cheers

Tom

With a fixed rate loan, there are restrictions on the extra repayments you can make, and offset accounts.

Cheers

Tom

Richard is right Scott. However I do notice you do say we a few times in your post. Do you maybe have a partner who's income might help for serviceability?

Also you mentioned 5 years ex bankrupt. Is that 5 years since discharged or declared bankrupt?

Cheers

Tom

Would stay away from Tarneit/Truganina, Infrastucture there is poor.

If you do want to stay in the north, in my opinion Epping is one I would look at.

Cheers

Tom

Agree. Mind you the people I know who live in that area and work in the city take public transport (train) instead of driving, which is a huge plus for that area.

Kristina, you mention about moving, but also talk about an investment. Which is the property going to be, PPOR or IP? As one would be more emotionally driven than the other.

Cheers

Tom