Normally maximum refinance would be 90% so in that case minimum 10% paid off or altenatively the property would have need to have increased in value to allow a  maximum of 90% of new valuation.

Normally maximum refinance would be 90% so in that case minimum 10% paid off or altenatively the property would have need to have increased in value to allow a  maximum of 90% of new valuation.

Regretfully no way of reducing the Stamp Duty which is charged on the Transfer value or valuation which is the higher.

Personally i would be borroing the full amount and use your own cash proceeds to place in an offset account.The net interest amount paid with the right lender is exactly the same and you still have the flexibility of immediate access to your own cash funds if needs be. You also preserve the full Tax deductability of the interest.

Harry no that is incorrect.Many deals are done with Title in one name and the loan in joint names. Normally need to be some related party interest or benefit to the party concerned.

Yes i most cases depending on the loan amount.It is not just the rate that is important but the structure of the loan.Local branch wont have a clue and even if they did wouldnt care less anyway.CBA have been promising a fully transactional offset account for the last 2 years.

GOMIt is simple the MISA offset account from CBA is not fully transactional and has minimal amounts you can transact from.There is no nipping up the road for a curry and whiping $35 out of the whole in the wall.The Anz One account beats the MISA hands down every time.

Hi JessOf course the 3rd option which we havent discussed and probably should would be to consider buying the property in a Discretionary Family Trust with both of you as Trustees and beneficiares. The 2 children would also be beneficiares.Course downside is whilst the property is moving from negatively geared to positively geared you need to come…[Read more]

Veronica flexibility is the key to investing and structured correctly there is absolutely no downside to the way in which i suggested you go about this deal.Again LMI would not be payable even though you are borrowing 100% + of the purchase price as you are using collateral security to fund the 20% deposit plus costs.There will be no increase in…[Read more]

Hi VinnyThe Bank or your Broker should have split the loan between the $190K deductible debt and the balance. This way it would be fairly easy to apportion the interest as the Bank will charge the 2 accounts separately.Yes claiming a deduction on the higher non dedcutible is cerainly likely to lead to a few ATO hard questions.Get your Tax agent…[Read more]

Heather could you please name the investment company you purchased thru so other forum members can see whether they want to pay $30K over the odds for the service and rent guarantee.

Assume the purchase price of the new IP is $300,000 and purchase costs come to $15,000.You parents take out a loan of $75,000 and use this to pay down your PPOR.In turn you then apply for a new interest only loan on your PPOR of $75,000.(You turn your currently PPOR loan to interest only with 100% offset account to free up monthly cash flow.)You…[Read more]

JohhnyHate to burst your bubble but unless the securities are cross collateralised no lender is going to lend you 100% of the purchase price allowing you to use your savings as deposit for the renovations.If the work is being done on a fixed price basis you might find a lender be preapred to advance stage payments based on the increased value.Also…[Read more]

Hi VeronicaI certainly would not be using any of you own funds to purchase the property and would be looking to borrow the full $600,000 plus acqusition costs.Split the loans between an 80% loan on the new IP and the balance secured against your PPOR.Place you current savings in an offset account linked to the IP as this will have the bigger…[Read more]

Sorry why would you put in a $100,000 in as a cash deposit when you have a current non deductible home loan.Why would you not pay down the existing loan by $100,000 and then borrow $100,000 as an investment loan to get $100,000 of deductible interest.

MattA Credit License is required in WA for undertaking instalment finance and due to the constraints and costs most investors do not offer such products in that State.We are also receiving more and more enquiries from clients in Qld who are seeking Wrap terms and suprised at the quality of the type of client the applications are coming from.

The 3 lender Terry has mentioned have some of the only true transactional offset accounts in the market.Forget MISA as it stands from CBA it is not fully transactional.Anything else is not as competitive.

To be honest i think your average Financial Planner will have no idea and will charge for little or no valid or constructive advice.One consideration is what do you think Brisbane house prices will be in a years time…. I have an idea and they wont be where they are now.

Totally agree with Terry. Why oh why would you use your savings as a deposit for the new property.Running the business through a Trust structure will give you the flexibility each year to decide which one of the beneficiaries receives the income distribution and you certainly would  be able to manage your Tax issues.Has this Broker ever purchased…[Read more]

I am with GOM i use NRMA on a fair amount of my properties.