No Henry get your Broker to roll it over to another IO period.With the right lender it is a fairly simple process. With others it is a full application.CheersYours in Finance

Hi MelvinSorry but i hate to say i think you are totally confused and will come a real cropper if you are not careful .If you use the redraw the interest will not be Tax deductible.The loans will be cross collateralised and you definately dont want this.I am just off to take my 17 year olds soccer training so have limited time but if you shoot an…[Read more]

If you have non deductible debt on your PPOR then you dont want an offset account on your IP.Not sure which lender you are going thru but i wouldnt be paying for something i dont need.CheersYours in Finance

Hi MelvinOk what i would suggest is get the lender to cancel the redraw on your PPOR and then take out a new loan split for the same $40K.This is to be an interest only loan and will have a separate account number and be easy to identify the interest.You can then use these funds as deposit for the new investment property.After all of this however…[Read more]

Hi MelvinOk what i would suggest is get the lender to cancel the redraw on your PPOR and then take out a new loan split for the same $40K.This is to be an interest only loan and will have a separate account number and be easy to identify the interest.You can then use these funds as deposit for the new investment property.After all of this however…[Read more]

Reduce the repayment by switching to interest only.CheersYours in Finance

New residential premises are subject to GST on their first sale. "New" means premises which have not previously been used a residence. New residential real estate can consist of subdivided land, a newly built house, a newly built apartment, and even a newly built house-boat. It makes no difference whether the developer of the new residential real…[Read more]

Hi ChrisYes the 44K subject to serviceability is available to be used.You can use 80% of the current or potential rent for serviceability.Remember though if the property is negatively geared you need to adjust your Taxable income to take this into account.CheersYours in Finance

Hi PeachYes whilst you may have purchased the property as Tenants in Common you will still be liable for his $155K.In regards to going forward Yes you can certainly take out 2 new loans in 3 names of $50K each and use this as a deposit for a new IP.As i said NOT every lender classifies you  as being jointly and severally for the entire debt.We do…[Read more]

Hi ChrisI must admit i read your post a couple of times and got myself lost.There are so many variable when it comes to serviceability it is not funny so we will make the assumption that the Anz calculator i about right.What you have to realise there is a big difference between equity and useable equity.Equity can simply be described as the…[Read more]

You wont be able to refinance to a 25 year interest only loan (with the odd exception) but depending on the lvr could make it a 10 year interest only term.No advantadge in refinancing to $204K interest only as you wont be able to claim the interest on the difference. In my opinion you would better of to set up a separate split. I guess you need…[Read more]

Hi PeachLook hate to say the advice your mortgage broker has given you is incorrect. You certainly dont need to be buying with your brother but you do need any new loan application taken out on a security that is jointly owned to be in all names.  You say that you own an amount of $228K but i assume that the total loan on the property is actually…[Read more]

And i certainly wouldnt be seeing C & N for the advice unless you go with a deep chequebook.Call either Michael or Jamie and the credit advice is free.CheersYours in Finance

The agents sales costs are deducted from the purchase price when it comes to Capital Gains tax purposes so as long as the Contract is dated this Tax year you will be able to show the Gain in this years Taxable income.Dont forget however you also need to discount the market valuation (I will assume you did a valuation) from when the property was…[Read more]

Hi Fence (luv the handle by the way)Firstly welcome to the forum and hope you enjoyr time with us.If the margin is there and I would want a minimum of 20% then certainly why not explore it further and go for it.In saying this you need to be aware of a few things in relation to both the financing of the project and the Tax implications if and when…[Read more]

EpsomNo i agree with the boys your Broker is doing the right thing by you and not the Bank.Bit more paperwork but shows you he / she is acting in your interest and not the lenders.100% deductible and you still retain the use of the offset funds.CheersYours in Finance

Hi boogeMay i ask why you are making fortnight repayments on an IP loan especially when they are principal & interest repayments.Extending the loan to 30 years will have absolutely NO difference to the repayments if they are interest only. You really should be making interest only repayments.See what your Broker has to say and then post it on the…[Read more]

What repayment are you trying to calculate interest only or principal & interest repayments ?Remember lenders calculate repayments monthly just a matter of you doing the division thereafter.CheersYours in Finance

BoogeWow there old friend. Hope you havent gone to far with the IP refinance because if you have sounds like the structure is all wrong.Do as Jamie mentioned and stick the surplus cash into your PPOR offset account or directly in the loan.Why are you refinacing ?Admitedly there are some crash hot rates around at the moment just make sure you dont…[Read more]

I am not aware of any lender that does not ask you to declare any other loans which you guarantee.Even if they dont specifically ask the question i think you would have a duty to declare it anyway.CheersYours in Finance