Terry is right if you think you are ill disclined then pay off the loan and the positive cash flow will serve you when circumstances change. If you are good at budgeting then interest only will serve you well in the long run.

If you have already signed a purchase contract it is too late to amend the Title to buy in Trust without incurreing double stamp duty so that one is out.As the property is off the plan you have plenty of time to arrange finance but the normal recommended loan strucure would be an interest only loan with a 100% offset account.

Depends if he has an allocated number of searches he can do each month before he reaches his maximim allowance and has to pay extra for them.If not why not come clean and ask him.

Thanks KimHope you are having a good restful day. After a frantic week we got there in the end.

Hi GrugLove the avatar by the way.To be honest personally i would still look to use as 100% offset account on an interest only basis at least for one of the properties even if you place 20% deposit down on the first purchase and keep the rest up your sleeve for future deposits.The funds in the offset account will still make the properties…[Read more]

Shoot me an email with the address and I will run you off a Residex report so you can see some of the Statistical information and comparative sales evidence.

AndrewRather than using a personal loan you could fund the deal from a investment line of credit or even capitalise the interest.This is a structure we establish for many client undertaking small developments. 

See not just a pretty face.(If you are a current client please do not respond to this comment as you run the risk of having your loan declined lol)

Hi ZanTo safe guard the deal why not take out the LOC secured against your PPOR with the Commonwealth for 20% of the investment property purchase and acqusition costs and then look to take out the investment with an alternative lender.When the property value on the IP increases increase the loan and payout the LOC with the CBA.This way your IP…[Read more]

Hence loan structuring is so important from day 1.

Assuming they are no common walls and serviceability is sufficient to cover all 7 properties.Must admit in 15 years of doing developments i cant say i have ever seen a DA approval on a community or strata title block that has ever allowed separate titles from day 1 without the need to have them complete.

80% Margin Loan on ASX 50-100 is fairly standard now with the right Margin lender,GOM Yes you are correct about the nominal interest rate you can claim under a GPL.

Because the ATO use the "purpose test" for the funds to decide whether the interest is deductible.You could secure an investment loan on a herd of cows and the interest would be deductible but purchase a overseas holiday and offer your investment property as security and the interest certainly isnt claimable.This is why you need to be vary careful…[Read more]

There is nothing new in this and is readily used by investors.Depending on the State you may still find that Stamp Duty is payable.

PlummerThink you are mistaken as buying in Trust will have NO affect on your borrowing capacity.I do not max out my borrowing capacity when I try and purchase future IP'sAll of you Trust liabilities will be considered as personal liabilities so it will not improve your situation.

Ok i think that would be doable but would mean breaking the fixed rate loan on the 2 investment loans.Just keep your PPOR loan with wesuck as it is a fairly high lvr.

Unfortunately you are miles away on the Westpac serviceability scale.Are the 2 Westpac loans cross collateralised ?On first glance I believe it could be done but more information would be needed and probably need to refinance 1 of the loans as ING wont do it either.

Community Title is fairly common.Sorry i just assumed your Bank had indicated this was a solution afterThe above strategy was formed after reading through the various posts and talking with the bank.I go back to my original question does the DA allow for the lot to be subdivided as it and not require the construction of the individual…[Read more]

SilverxCosts would be deductible from the date of settlement until the day you moved into the property as your PPOR.This would include interest, rates etc.Remember LMI, application costs are all loan fees and are deductible over 5 years or the Term of the loan whichever is the lower and are proportionalised in the first year so would depend on the…[Read more]

Jaffa has just returned from his trip around Oz and is back with internet access so should be cleaning up the site.I have forward a list of posts that needed amendment and I think you will find it is a lot cleaner going forward.