Yes LMI where incurred for investment is considered a Loan Cost and a deductible expense over 5 years or the term of the loan whichever is shorter.if you equity galore and dont need to take out LMI then dont do just for doing so sake however if you intend to purchase again and equity is tight you might want to cop in on the chin now whilst the…[Read more]

Shout me an email with the address and I will pull up a Residex report on the property for you.

GbalfIn essence Catalyst is correct however that is not necessarily the be all and end all.Is the property owned Jointly ? If so you could look to purchase / sell the share to the other party.If not you could look at selling the property to a Unit Trust where you hold all of the Units and in this case tjhe interest on the new loan would be fully…[Read more]

Hi BethNo i dont believe anyone was suggesting this not use the equity in 1 property to purchase another as otherwise you are forced to use your own cash savings and certainly not wise especially when you are starting off.Your Broker should be able to show you ways to maximise your borrowing yet structure the loans correctly.

Now i would wait until you have found a property and are ready to pounce.Also why would you have a P & I investment loan ?

oneworldIf you are happy to consider someone on the Northern Gold Coast why not try Steve Hodgkinson who is a partner with GOLD GROUP CHARTERED ACCOUNTANTS.Steve has been my Accountant for 14 years and is an expert on property structures.I have a few more properties than you and dont pay that much more in Accountancy fees.Address56 Davenport…[Read more]

Yes think you are getting a little confused.If the loan is $300,000 then the P & I repayments are based on this loan amount.If you have $100,000 sitting in a 100% offset account then interest is only charged on the net balance i.e $200,000.Therefore the difference between the 2 figures is a principal reduction.As the principal debt reduces the…[Read more]

First thing is dont use your current  redraw as the interest is not deductible.Dont use your funds in your MISA account as you are loosing valuable deductible interest.You can take out a separate loan on your PPOR to 90% or even 95% with the odd lender however will incur LMI over 80%.LMi where used for investment is considered a loan cost and as s…[Read more]

Yes have done 3 or 4 of them in the last couple of months alone.

Yes that is correct.Interest is charged on the lower amount and therefore is all you can claim during the year.

Good to hear Rudra.Never stopping trying mate and you will get there.

Dont have an issue with Homeside but for like for like i prefer NAB.Service with NAB is a lot better in my personal opinion.

API because they send a free copy for being in it.I am not mean i am careful.

Jmr hate to say every lender you approach will consider the deal as a Commercial loan because of the security.This is not to say that all terms and conditions will be the same and they indeed do vary considerably in the market space.

No.

I wrote an article for API last month about my own personal situation.I am just glad in 1995 when i hadnt even been in the Country 18 months I didnt wait.Certainly back in the 90's in Brisbane and SEQ most properties were negatively geared.

I am with Terry i wouldn't be paying anything into the loan itself.On the basis that you dont need the interest to live off switch the loan to Interest only and you will only be paying interest on $30,000.

Dear Mr Ormond By two posts made on 14 April 2010 (Posts) I made certain statements to a number of people directed at Wayne Ormond The Posts contained serious allegations which I regret having made. I am pleased to take this opportunity to withdraw them. Contrary to the impression which the Posts may have given, neither Wayne nor Refund Home Lo…[Read more]

Hi SolomanYes the PPOR could be P & I or interest only. If you think you will live in the PPOR forever and a day then P & I is fine.If you think one day you might move out and rent the property I would go interest only.Either way i would be linked a 100% offset account to the loan and this is the account you would deposit your wages and rents…[Read more]

Suggested structure would be:1) Line of credit or interest only loan secured against your PPOR to cover 20% of the new purchase price & acqusition costs.2) Separate standalone loan for 80% of the purchase on the IP.When value of the IP increases draw the loan upto 80% of the increased valuation and pay back the LOC.Repeat.