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  • PLC replied to the topic Fixed Interest Rate in the forum Finance 5 years, 11 months ago

    Hi magic,

    Unfortunately it doesn’t work that way. Lenders still add a standard buffer to fixed rates for serviceability purposes (as these products revert back to a variable rate at the end of the fixed rate term).

    Westpac and St George used to allow a buffer of only 0.5% on fixed rate products of 3 years or more, however they have stopped that…[Read more]

  • Terry is correct.

    If say you had a $370K loan at the start and paid off $70K to make the balance $300K, the tax deductible amount would be the interest on the $300K when it turned into an IP. However this is only if you didn’t redraw any funds from the loan during the term. If you did, then as Terry alluded to, it is a bit of a mess and your…[Read more]

  • PLC replied to the topic Wasting Time in the forum Finance 5 years, 11 months ago

    I had a broker friend in a similar situation recently. He had a client with a complex scenario and in which he helped for a month discussing structures, etc. The client then took all this information and went to another broker to help him. The other broker then stuffed things up so the client came back asking for my broker friend to continue with…[Read more]

  • PLC replied to the topic Cross Collateralizing in the forum Finance 6 years ago

    The only meant it was the best thing for them as it only needed one application to submit, and not multiple. Basically they were lazy which is never a good thing for the client.



  • I’m assuming that you are looking at tapping into the equity of your PPOR for the IP? In that case the separate splits are okay. However there is no need to access the full 80% ($240K) of the equity in your existing property. Should be just enough to complete deposit and closing costs and have the main loan against new property.

    This is a no…[Read more]

  • Yep, if your saving for a PPOR when you have an existing IP, then IO with offset is the way to go on the IP loan.

    Any “principal” that would have been paid can be directed to the offset thereby reducing the interest to be paid which then leads to more funds being saved for that month. Then rinse and repeat.

    When you find your PPOR, withdraw the…[Read more]

  • PLC replied to the topic tax question in the forum Legal & Accounting 6 years ago

    As it was rented out first then the CGT is calculated proportionally to the time rented out.

    If it was lived in first then the calculation would be different.

    That’s just the way the ATO laws are.



  • PLC replied to the topic Cross Collateralizing in the forum Help Needed! 6 years ago

    Agree with the others above. Do not cross-collaterise as the only one this benefits is the lender.

    The lender has all the control and if you get into any financial difficulty then your whole portfolio is at risk.

    Put the control back into your hands and get a decent broker to sort it out for you ASAP.



  • PLC‘s profile was updated 6 years ago

  • PLC replied to the topic Increase borrowing capacity in the forum Finance 6 years ago

    I thought the same thing Jamie with AMP. DUA to $850K at 90%.

    Haven’t done a deal with them since late last year so might have changed.



  • There are so many reasons not to cross loans. Banks have all the control. They can basically dictate to you what to do if you ever decide to sell or try to gain equity (i.e. you might not see the money from a sale or they won't let you access equity as your other propertie(s) have devalued).



  • PLC replied to the topic Mortgage Brokers in the forum Finance 6 years, 2 months ago

    tom123 wrote:
    Hi PLC,

    That's really interesting, Is there any other documents you might have to blacken out? and when you email them to the lender, which department would you email them to / contact?

    Cheers, Tom

    Off the top of my head I cannot think of anything apart from tax file numbers. When you email the supporting documents for the loan…[Read more]

  • Qlds007 wrote:
    He lost me on post number 12 let alone post number 37.

    I am totally confused.

    I can understand posters wanting to help others out, but apart from the bewildering comments what is it with digging up old threads that are clearly dead and buried and rehashing them now?



  • PLC replied to the topic Mortgage Brokers in the forum Finance 6 years, 2 months ago

    Hi Tom,

    When my clients are buying, I usually advise them to allow a minimum of 45 days settlement from date of signing the contract. That way I'm pretty confident that the loan will be submitted, approved, docs signed and returned, lender vetted, and settlement booked in time.

    It can be done in a shorter time frame, however with Murphy and his…[Read more]

  • You need to realise that actual equity and usable equity are two different things when it comes to borrowing, and Jamie basically covered that part of the equation above.

    To answer the other part of your question Newbie, you should really access the equity as a separate loan split under the same security, especially where IP's are concerned. That…[Read more]

  • One other thing not mentioned is with an investment there might be ongoing rental payments you pay which are an expense that aren't included when buying a PPOR. This will drastically affect borrowing capacity.

    As mentioned too many variables are taken into account and it's not as straightforward as might be expected at first glance.



  • PLC replied to the topic Considering an IP in the forum Finance 6 years, 2 months ago

    Ferdnand as Richard mentioned, there are better ways to use the cash than straight out as a deposit. If you don't like the money lying around use it to pay your existing PPOR mortgage, and then take out a loan for the cash amount against the PPOR and use that as the deposit. You still have the same total loan amount however it is advantageous as…[Read more]

  • Hi Robbie,

    In my opinion houses are better deals than apartments because you have greater options on what you can do with them going forward, and generally capital gain is higher with houses than apartments all things being equal.

    Within your price range you will most likely be limited to one bedroom apartments in the inner city suburbs (you…[Read more]

  • As Jamie mentioned, the purpose of investing is not to claim money back come tax time, it is to make money in the long run whether it be through rental returns and/or capital gains.

    The offset account you have gives you the possibility of going two ways. You can buy a PPOR using the money in the offset as a deposit and turning the current…[Read more]

  • Agree with Richard.

    You will find any rebates will be taken into account when the valuations are done so will come in lower, so you will still have to meet the savings requirements of the lender (i.e can't use the rebate as your deposit equity).



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