Terryw wrote:

jate wrote:
Would anyone ever use a Line of Credit to pay off monthly loan repayment interests instead of taking it out of a normal transaction/savings/offset account? or will the banks somehow not really allowed because it too is 'borrowed' funds?

For example:
Property A – Loan – Monthly interest charges $111.11
Property A -…[Read more]

You will find that the interest for November was recorded on the first business day of the month of December which was the 2nd so it has included one extra day.

Redraw and offset are totally different things and are used strategically in different ways. If you ever intend having a long term view of renting out the property down the track after…[Read more]

tigermiger wrote:
Sorry for my slow reply… I'm trying to keep the relationship but it's not going well ;-(

I do like the area to live and would be happy to live in the house after our relationship breakdown. We built the house 5years ago in Victoria – house title and Commonwealth loan (p&i) is in both our names. Home loan amount is at…[Read more]

Agree with Colin above. To optimise your repayment structure, the $60K in the loan offset linked to the IP should be in your PPOR offset account.

At a 5% interest rate, that's about $3,000 a year in interest deductions that you are missing out on.

Cheers

Tom

In Victoria, stamp duty may be exempt when transferring property between spouses, but not other family members from memory.

Cheers

Tom

Hi Jenny,

Like Richard said, lenders will either need evidence of genuine savings or in the case of non-genuine savings have evidence of the funds to complete. So a promise to pay $5K a month until settlement isn't enough to allow lenders to give unconditional.

You would also need to save for the stamps, etc in addition to the deposit which…[Read more]

It seems you have a reasonable equity position and setting up your IP loan as interest only is the correct thing to do so it's been a good start by yourself.

As others have mentioned, more information would be needed before making recommendations.

Cheers

Tom

I might be able to help you if you wish to contact me.

Have access to a car buying service via a vehicle financing lender I do deals with.

Cheers

Tom

Jamie M wrote:

PLC wrote:

Living 2kms from the racetrack you can't escape the hype and atmosphere.

Just avoid wandering into the mounting yard – they throw hay makers in there. I couldn't believe that footage – disgusting stuff.

Cheers

Jamie

Can't believe someone would have the nerve to do something like that in front of thousands of…[Read more]

That is the issue with a lot of self employed people. While annual revenue might be high, after deductions the taxable income is much lower which leads to a lower borrowing capacity.

As the others have said, find yourself a decent broker who can help you through the muddle. Along with what Jamie has suggested, lenders have differing servicing…[Read more]

I wish that I forgot about it. My money was on Verema who ended up breaking a leg and being put down. Shows how well I was going.

Living 2kms from the racetrack you can't escape the hype and atmosphere.

Cheers

Tom

Heed the warnings of the above.

While a cheaper interest rate may seem enticing, any money you might save may pale in comparison with potential lost thousands in deductibility if not structured correctly.

Cheers,

Tom

Horses for courses. If you have the time and patience with dealing with people when they are harassing you with IP issues, then it may work out doing it yourself.

I on the other hand don't have the time so a property agent is invaluable. Anything comes up (especially in older properties), one phone call to me and I make a quick decision and they…[Read more]

Hi Peo,

Likewise not an accountant but from memory if you are going from an IP to PPOR, after eventually selling CGT is based on the proportion of time it was rented to the time it was a PPOR.

Therefore a valuation at the time of moving in for the PPOR phase is unnecessary and wont be used.

Obviously check with your accountant.

Cheers

Tom

Stevie2013 wrote:
Listening to the recent “Your Money Your Call” podcasts Ive decided it’s time to jump on fixing the interest rates before the bank beat me to it & begins raising.
Assuming that I don’t intent on selling I’m interested to know if others out there that have fixed or or about to are locking in 2, 3 or 5 year fixed rates. The…[Read more]

You might be able to transfer (port) the equity loan on A to house B if there is enough equity in that property when you sell A.

Cheers

Tom

As Catalyst mentioned you can "sell" your share to him, I'm not sure of the rules in SA but it will most likely incur stamp duty costs and there might also be some CGT to pay on your behalf when selling if the investments have increased in value since you bought it.

Do the numbers first before you decide to do anything.

Cheers

Tom

Another one to consider –  Ivor at Naison Real Estate in Northcote.

http://www.naison.com.au

Cheers

Tom

Jamie M wrote:

dragun wrote:
I've read a number of books and articles that say you should always at least ask the question to a prospective broker whether they are willing to refund a part of their commission.  

Without sounding rude – I'd politely decline the business. 

Cheers

Jamie

Accurate in my case too.

The way I see it, I'm…[Read more]

To me it doesn't matter if the client is buying their first property worth a few hundred thousand or their umpteenth property with a portfolio in the millions, I try to get a better than carded rate after finding the suitable product for their needs. So as Michael said above everyone has equal standing. Though a lot of lenders do have natural…[Read more]