Hi boshieHard to comment without actually seeing your husbands actual Tax Returns but with the potential rent being taken into consideration and with different lenders all calculating serviceability slightly differently especially when it comes to investment loans I would certainly look to get a 2nd opinion.Some mortgage brokers have little or no…[Read more]

Hi TassiegirlYes if the property is to be rented out then lenders will take the potential rental income into consideration and this will assist your serviceability however any rent or board being paid on your behalf for your current property will also be taken as a liability.Under the new National Consumer Credit Protection legislation…[Read more]

Hi LittleFirstly welcome to the forum and I hope you enjoy your time with us.Certainly using the right entity is important but setting up the right loan structure is probably more important.I have to say i see or talk with so many clients that have spent thousands on overpriced Accounting structures only to find out that they cannot finance the…[Read more]

Sorry to come late into the peace but still in the UK and been skiing for a few days without email access.Only thing i would suggest is that your own PPOR loan be IO rather than P & I unless you believe you are going to live in the property for ever and a day and never want to rent it out.CheersYours in Finance

Hate to say i disagree as infallable has been discharged for 12 months.CheersYours in Finance

As SNM said you can certainly take a mortgage out on the property but the interest wont be deductible.The other option is to look to sell the property to yourself either using a Unit Trust / spouse, borrow 100% of the purchase price and the entire loan would be deductible as the purpose of the funds would be investment.You might have Stamp duty to…[Read more]

Hi InfallibleFirstly welcome to the forum and I hope you enjoy your time with us.As long as you have been discharged for 12 months the deal could be done (wont say the interest rate is attractive) although > 2 years would give you greater flexibility.I am currently in the UK on holiday until the end of January but if you care to drop me an email…[Read more]

Alternatively you could do the same exercise with a major lender at a cheap interest rate.Of course any such strategy requires independant Tax advice and certainly would suggest you look at a Private Tax Ruling.A good independant mortgage broker can give you a few options in relation to alternative lenders.CheersYours in Finance

Hi DucksterOn the floods wondered how you were coping in your part of town.I am in the UK on holiday and understand that Chapel Hill is ok albeiit a little damp.Had an email from one of our property managers to say that of my IP's are ok in Taringa / Toowong although a couple of the houses are flooded.Not sure whether i really want to see what…[Read more]

Hi MarkAssuming it is a Defined Benefit Fund i think you will find it will be difficult to beat.Course doesnt mean that the performance is any good.Difficult to comment further without other information.CheersYours in Finance

Hi Michael & BrowynHate to say you are mistaken.A SMSF is allowed to borrow to purchase a property and there are a couple of ways to do it.We have many clients we have assisted in purchasing property both here in Australia, USA and the UK within a SMSF.CheersYours in Finance 

Hi MarmelFirstly welcome to the forum and i hope you enjoy your time with us.Whilst i agree with the advice to date i think there are other considerations prior to jumping in and swiching the loan.I assume the property is held as Joint Tenants meaning you will both claim 50% of the loan interest and associated depreciation / capital allowances.…[Read more]

Hate to disagree with Euro but there are certainly several lenders who will do 90% on a NRAS property.Have settled a number of them and both mortgage insurers are ok.CheersYours in Finance

SM must admit I wouldn't go as far as Maurice and we recommend our clients consider a SMSF if they have $75K +.They have to understand the set up, and annual complaince costs but if they are looking for flexibility and opportunity of increasing the returns over a standard industry fund then it is certainly an option.CheersYours in Finance

Hi GcpHate to put a downer on your loan structure but the last thing i would do is utilise a LOC for an investment property.A simple straight forward interest only loan would be far the best type of loan and surpluis unused funds could be deposited into a 100% offset account.Interest will be deductible if the funds are used for capital…[Read more]

Hi naomismFirstly welcome to the forum and I hope you enjoy your time with us.I must admit i have read your post a couple of times and am still not entirely convinced i understand what you want to try an achieve.Borrowing funds using the IP property as security and then using these funds to pay down your PPOR debt will not eliminate the debt…[Read more]

Hi HillcamFirstly welcome to the forum and i hope you enjoy your time with us.1. There has been many previous posts regarding the pro's and cons of NRAS so might be easier to do a search and read some of the previous comments.2. Interest only  V P & I loans. There are pluses and minuses of both however where you have a home loan on your PPOR with…[Read more]

Structuring the loan correctly is parmount to an investor and to be honest utilising the redraw on your PPOR is not the way around as very simply the interest willm not be deductible.Set up a new loan secured against your PPOR (not redraw) and use this loan to fund the 20% deposit and acqusition costs on the new IP. Then take out a new loan for…[Read more]

Hi PrizHard one to answer as it all depends on who you are currently with and what are your current requirements.In most cases we find that we are able to not only save the client money with a more competitive loan product but also by splitting the loan between separate lenders find that the loan can be structured correctly.CheersYours in Finance

Although from you later posts doesnt seem to want / be able to provide you with structuring loan advice.CheersYours in Finance