Is there any reason why you cant do both.Buy the PPOR in the ACT and put down minimal deposit, take advantedge of the Grants and concessions and then buy your IP up here in SE Qld.CheersYours in Finance

The difference is the loan is being reduced by the principal component each and every repayment (albeit initially small in the early years). As the debt goes down the amount of interest charged reduced and therefore reducing the amount you could claim as an interest deduction of you decide to rent the property out in the future.If there is any…[Read more]

Hi KevinFirstly well done in switching the loan to IO to preseve the deductibility of the interest that is certainly a move in the right direction.Now going forward.1) Crossing the loans together will not get you out of paying LMI if the numbers are not right and to be honest often it can be cheaper on the LMI front to have split loan. Structuring…[Read more]

Hi NHGSorry i cant believe your Broker is telling you he cant find a lender who wont accept a Power of Attoney.You are not the first person who has ever gone on holiday during the buying process and trying to secure a mortgage at the same time. Dealing with an absentee buyer and having to do everything on is own is standard practise for Brokers.If…[Read more]

Or alternatively borrow in a State where you can get Finance as a Foreign National.CheersYours in Finance

Hi DanielHate to say NO not quiet.Assume you live in the first property so get $7K to add to your savings which makes $52K$400,000 x 5% = $20,000 (Assume you managed to get the Mortgage Insurance capitalised on the first deal you are still going to have your own Solicitors costs, maybe bank application fee etc, mortgage registration,…[Read more]

Hi BrokerausThink you will struggle to find most Aggregators take you on board as you need a minimum of 2 Years prior experience so you are going to be limited to the likes of Aussie unless you can find a mentor.Secondly remember you need to have also completed the Diploma in Mortgage Broking by June 30 2012.Good luck and let us know how you…[Read more]

That is exactly why i suggested a Line of Credit secured against the land to assist in cash flow.CheersYours in Finance

SkippyPersonally i would just take the LOC with the Building Society and then try and get a base rate investment loan elsewhere.With a lender who is restrictive in regards to lending terms there is no point in digging yourself in deeper than you need to.When the IP has increased in value you want to redraw the additional funds upto the orginal lvr…[Read more]

Hi SkippyIt all depends on the available equity. Lenders do take 2nd mortgages but as their risk is greater the normally limit the maximum combined exposure.No when calculating your over equity lenders do not take intom consideration funds in your offset account as these could be withdrawn at any stage.Yes i find it funny your Broker has placed…[Read more]

Yes that is exactly as we mentioned in earlier responses.As Terry pointed out you have had it with the redrawn funds you cant make the interest deductible by refinancing.You dont have to have the redraw account removed as it will be part of the loan features just change it from P & I to IO and if you cant have an offset account linked to the loan…[Read more]

Db thats exactly the sort of rate you should be paying for a balance transfer – well done.Keep us informed of your debt reduction progress and good luck.CheersYours in Finance

Hi AlexGuess no one can give you a right or wrong answer but i think it all down to value for money.In buying a second hand unit you have something to gauge the price against and that is comparative sales in the area.When buying off the plan you are usually buying a property at a fixed price in the future. One issue we are seeing in a lot of OTP…[Read more]

Hi MichaelTotally agree thats why i love this forum it is like open debate and you can learn so much from others.Guess my arguement was that if Matthew was with a Retail Fund and fed up of seeing his Superannaution go backwards month to month the amount he had to invest could be rolled over, With specialist advice he could dip his toe into…[Read more]

Forgot to say let us know if you cant find Jamie's contact details and i can post them for you.CheersYours in Finance

Hi Housing FFirstly welcome to the forum and I hope you enjoy your time with us.Jamie from Passgo who is a regular forum contributor is Canberra based and would be a great place to start.He could answer every question you could throw at him in regards to any aspect of lending and is a property investor himself (unlike many mortgage brokers) so can…[Read more]

Hi TimFirstly welcome to the forum and hope you enjoy your time with us.Must admit i am glad i left Uni in the UK before they bought in the student loans.The required monthly or annual payment on the HECS based loan will be considered a committment and therefore will reduce your serviceability but can be counter balanced with your Australian…[Read more]

Ahve to agree with Derek if we look at the numbers Assume value of $420K x 90% = $378K (less LMI) – Existing loan of $350K gives you realistically useable equity of around $25,000.Now assume you found a property for $250K and could borrow 95% = $237,500 the other $12,500 is going to be more than swallowed up with your acqusition costs. At $200K y…[Read more]

Hate to disagree for once with Terry and Michael. I dont think $95,000 is necessarily insufficient to start your own SMSF and in fact i have done a couple with a less. All boils down to what you think you will invest in but assume it is say a $300,000 unit you could easily cover your 20% deposit, pay your acqusition costs, set up the Bare Trust an…[Read more]

I am sure your Broker had some reason for suggesting a P & I investment loan when you have no PPOR loan but i guess he had his reasons. Maybe you dont ever intend to purchase a PPOR.Even if this was the case i think i would have suggested Interest only with 100% offset but everyone to their own.As Michael has mentioned if you are happy with your…[Read more]