As Terry has mentioned you cannot Borrow funds using the property as security to renovate an investment property owned under a SMSF.

Cheers

Yours in Finance

Unless of course if you are classified as a fully time developer and then it is merely added to your trading profit as normal taxable income.

Cheers

Yours in Finance

Hi Dave

Maximising the interest deductible on your IP and minimising the interest deduction on your PPOR is exactly what you want to achieve. You also want to try and use equity rather than your own savings and look to revalue in order to access further equity.

There are a few other strategies i recommend in order to accelerate your equity…[Read more]

Blade with the equity position you are in i think there are a variety of options.

Certainly if the NRAS property is used to pay down the PPOR debt even quicker i don't have a problem with this and then look at a property with good capital growth to balance the portfolio.

As i say to clients so often structure is paramount here to maximise your…[Read more]

Hi David

I am sure you have your reasons for wanting to keep the lvr under 80% (must admit most of my client's try and maximise their available equity by taking the lvr to say 89.9% on the IP and reduce the exposure on their PPOR).

Anyway my suggestion would be to set up a sub loan against your PPOR and on drawdown have the funds paid back into…[Read more]

Hi Motherhen

Exactly what you are after is something we are starting to do at the Property Know How Club.

Why not log onto the website and join up and start educating yourself on a variety of areas.

Cheers

Yours in Finance

Hi bigo

Must admit i personally wouldn't be using CBA either for such a deal but maybe your Broker has a reason.

Cheers

Yours in Finance

Hi Bigo

Congratulations on making the move into your own PPOR.

Given what you are wanting to achieve i am not sure i would suggest the NAB as a perfect fit.

I would be looking to go to 90% lvr and placing the balance of funds in an offset from day 1.
Also suggest you look at a lender who doesn't charge LMI but self insures as this in itself…[Read more]

Any expenses incurred as part of the investment will be deductible and these include power etc.

Cheers

Yours in Finance

Hi Jon

Depending on the term of the Agency Agreement the Vendor had with his Agent then possible he maybe entitled to claim a commission but as long as your offer has been accepted that is really not your issue and is a dispute between the Seller and the previous agent.

All you have to ensure is that none of the commission charges are being…[Read more]

Hi PB sorry to hear that the property has become vacant especially this time of year.

No as long as the property is being advertised for rent you can still claim all of the expenses and these are only offset by the actual rent you receive. If this is nil during the period then nil it is.

Have you thought about getting a Property Manager to…[Read more]

Hi Tom

Congratulations on taking the plunge into improving your overall wealth especially for one so young.

I have a few clients i have mentored whilst they were still at university and always good to see what they have gone onto do with their lives.

Nigel Kibel a long time forum member has started the Property Know How Club covering many areas…[Read more]

One of the policies which i believe sets us out from the others who offer VF in Australia is that we allow the purchaser to choose their own property.

We take applications from potential buys who go thru a process of making an formal credit application to us and we then issue a Conditional letter of offer giving them a maximum purchase price to…[Read more]

PFranky

The end loan can always be restructured when you decide what you want to do with the property (that is not to say you sell one side of the duplex but then load the investment property which you retain).

In regards to the loan going forward it would normally be set up as a land loan initially and then a construction loan during the…[Read more]

Heh Andrew you and i have met so you wont get any shocks lol

Have yourself a good Xmas.

Cheers

Yours in Finance

Yes i heard that flood cover is expensive.

Cheers

Yours in Finance

Hi SNM

Yes you are so right.

Funnily enough the Fin Planner concerned used to crow to me that he could make upto 30% commission on the original investment and couldn't understand why i wasn't putting my cllent's into such products.

Tom, another reason why you don't want to cross collateralise your loans when buying property.

Cheers

Yours in…[Read more]

Sounds like you need an electronic cash book.

Have you had a look at Cashmanger ?

Cheers

Yours in Finance

Hi Carole

Any update on the Settlement?

Cheers

Yours in Finance

Hi Yoly

Not quite as simple as all that as most lenders wont accept a Term Deposit as collateral security so you will need to ensure your lender will do so and then fully understands what you want to do.

But yes in simple terms use the TD as additional security and borrow the full 100%% of the property purchase price to maximise your deductions…[Read more]