I agree without knowing the actual numbers it is difficult to comment but i can think of a couple of ways of reducing your out goings and increasing your deductions.

Seems very unusual to me to for a property like that to be costing you so much.

Cheers

Yours in Finance

Hi JP888

Firstly welcome to the forum and I hope you enjoy your time with us.

Sounds to me like a perfect time to be looking to review your current lending set up and restructuring your loans.

Of course without knowing actual numbers it is difficult to provide you with too much accurate information but in the main
Good to hear that the 2 loans…[Read more]

I agree forum is a great source of information sharing.

Do not pay out anything more for so called mentoring as many of us do it for the love of it and the fact that it gives us great pleasure in seeing other investors get ahead.

Cheers

Yours in Finance

Hi Matts

I rest my case. Why would you ever pay down your PPOR where there is any possibility that the property could 1 day be an IP.

Interest only with 100% offset would have been the way to go.

Gives you both choice and flexibility as well as preserving the interest deductibility.

Cheers

Yours in Finance

Morgan the type of loan structure will depend on a 101 factors but in the main interest only with a 100% offset account.

Course when you say you have a deposit saved up how much are we talking about?

Remember you don't only need the deposit but the acqusition costs and more than likely the mortgage insurance premium.

Of course very hard to…[Read more]

Hi Matts

Sorry have to say a Mortgage Broker who suggests you pay down your current PPOR before investing (especially if you potentially might rent out your PPOR) is not a great mortgage broker and clearly either does not have sufficient investment experience.

Buying IP's is a journey and like any journey you need to plan for it. This includes…[Read more]

And there was me thinking there was a 3 line signature rule…….

Cheers

Yours in Finance

Hi Jac

You are so right it can be an absolute minefield and lenders interpretation is a whole new ball game.

Just processing my 4th SMSF deal for August across 3 different lenders and the requirements of each is totally different.

Also some of the advice i hear the clients receive also makes you scratch your head and make you think will the ATO…[Read more]

Hi Jac

You are so right it can be an absolute minefield and lenders interpretation is a whole new ball game.

Just processing my 4th SMSF deal for August across 3 different lenders and the requirements of each is totally different.

Also some of the advice i hear the clients receive also makes you scratch your head and make you think will the ATO…[Read more]

You could always consider a Spousal Transfer in order to maximise your deductions and provide you with additional net income to pay down your non deductible PPOR home loan.

Cheers

Yours in Finance

Given the favourable purchase price i believe you could find a lender lend against the valuation rather than the purchase price.

Cheers

Yours in Finance

Hi Steve

Unfortunately there is no link to such information as each lender works off its own serviceability formula.

As i mentioned lenders have adopted the Household Expenditure Model for assessing their Living Allowance expenditure and this means a reduction in how much you can borrow.

Cheers

Yours in Finance

Must admit i am not an expert on what NZ lenders are offering however in saying that i think in the current climate you have 2 chances and one of them is buckleys.

Cheers

Yours in Finance

No Corporate Trustees.

You wont be buying and borrowing much with an individual Trustee.

Cheers

Yours in Finance

I have 2 owner builders deals from forum members on my desk at the moment and maximum lvr we could get was 80% so going to depend on the equity you have in the current property.

Also 3 properties on the one initial Title will cause some lenders an issue.

Still in saying this can think of 1 lender who could probably do both.

Cheers

Yours in Finance

Hi Peter

We do a fair amount of SMSF lending and be suprised how many clients do realise just because the property is positively geared doesnt necessarily mean it will service on a SMSF calculator.

Also being a regional property you may find it is not an acceptable area for a 80% lend.

If you want to shoot me an email with the post code and…[Read more]

Heh Jamie

Don't suppose you know any good ones lol

Cheers

Yours in Finance

Hi Tom

Just to clarify the point on LMI deductibility.

It is actually 5 years or the Term of the loan whichever is the shorter period.

In the case of a 3 year interest only period the premium would deductible over 3 Years and not.

LMI is an opportunity cost and certainly where a client has limited funds or equity i would always look at it as a…[Read more]

Hi Dippa

If you care to flick me an email i will send you a complimentary copy of Trust Magic.

Certainly not a bad place to start.

Cheers

Yours in Finance

Regret to say with Esuper you get what you pay for and realistically that is very little.

Had a couple of clients say that on the surface it looked a good deal but then of course the extra questions and requested where extra over and above the scheduled fee something that an Accountant normally does for nothing.

As Jac has said probably a matter…[Read more]