Cheers

Tom

I just had extra discount approved for a Westpac investor deal, albeit being to renew a pricing discretion that had expired a…[Read more]

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Tom

Until you delve more into your personal scenario and go through your goals, you really won’t be able to tell.

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Tom

IP should definitely be all I/O, especially as you’re thinking of a PPOR down the track.

Fixed can be good if you’re looking at a set and forget type loan, or for when cashflow might be a bit tight and you would like to know your repayments for…[Read more]

As Richard suggests, you will have some extra costs involved with a high LVR purchase for an IP, however they are normally tax deductible .

With the plan you are suggesting, it can be most beneficial to have as minimal a deposit on your first IP as your risk profile allows. Coupled with the right structure it will allow you to maximise…[Read more]

As for the OP, take heed of Terry’s advice. It’s spot on.

Cheers

Tom

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Tom

As for the borrowing capacity, this all depends on how much your repayments are for the lease? That is dependent on the lease term, interest rate, etc. What that does is…[Read more]

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Tom

If you are still going to live in your PPOR then that LOAN 2 is not going to be deductible. If you made it into an IP then it will.

If you’re looking to buy another IP, what you can try dependent on equity position is take out a loan against either property to fund deposit + costs for new IP. That would be deductible.

If you don’t have…[Read more]

There is the option of either you or your wife purchasing the other half of the property from the other (I think what Richard was referring to as an option). Doing this will allow you to increase the loan size and keep the…[Read more]

If you really want the $50K in funds, then it would need to be done as a separate split to make things clean.

Cheers

Tom

Have you rented somewhere with an agent for a long term period? Some lenders take this as qualifying for genuine savings and then you can use other funds to come up with the 5%?

Some lenders also do non-gen, savings at 95%LVR, but they…[Read more]

The loan structure from…[Read more]

Though I’m not surprised as bad advice like that is prevalent from both banking staff and/or brokers. Just need to weed the bad ones out when looking for a good one.

Good to hear you set them straight Solomon.

Cheers

Tom

With the figures you have given, you have about $130K to play with in equity with your current property (before incurring LMI). However structuring this equity release is critical to give yourself the maximum deduction possible come tax time.

This is where a decent broker can be a enormous benefit.

Cheers

Tom

You need to make sure the existing $250K loan and $100K equity loan are separate loans and not one mixed one otherwise that will create a mess. Also the IO as others…[Read more]

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]

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]

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Tom

This is a no…[Read more]

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]

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

That’s just the way the ATO laws are.

Cheers

Tom

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.

Cheers

Tom

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

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Tom

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Tom

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]

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?

Cheers

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]

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]

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

Cheers

Tom

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]

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]

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).

Cheers

Tom

As I said there, every year we have some doomsdayer talking about the collapse of the Australian property market, in fact Mr Dent predicted it would happen 2 years back. Funny how it didn't eventuate then. Suppose if he goes to the well enough…[Read more]

Many thanks for your helpful replies – I appreciate it. I did double check this with my mortgage broker today and you are all right, he was trying to cross collateralise.

I told him I didn't want this, so he will get back to me with other products where this can be avoided.

However, he did advise that I may lose out in…[Read more]

As Terry said the way your partner is treated (non-resident, temp visa, etc) will affect whether approval from FIRB is needed, type of property you can buy and…[Read more]

These were his exact words, if your good self or any other posters who are familiar with this topic can translate for me in laymens' terms:

"How it would work you would keep your property at $200k and continue to pay that P&I and try and pay that down as you are doing, because there are no…[Read more]

I know in Victoria as long as the investment property was bought after July 2000 and is solely an investment property (i.e. never lived in by the title holder), then they are eligible for future FHOG. There…[Read more]

PLC wrote:
Ah the good old doomsdayers, where would we be without them the last 10 or so years?

He's in good company then. Every financial player worth his salt is saying the same things. Humans like to stay positive and talk up their chances even in the face of adversity. The problem with that trait is that it often means we…[Read more]

Harry must be in town to promote another book or something. He predicted the same property crash in 2012. I suppose if you say it enough times it might come true eventually (dartboard…[Read more]

Cheers

Tom

Though I'm not sure what effect the new housing developments on the old Don Smallgoods site will have.

Cheers

Tom