Hi WannabeWelcome to the forum and I hope you enjoy your time with us.Difficult to give you any information without hard data.Mortgage insurers dont like lease back display homes but depending on the rest of the deal maybe ok.

Thanks Matt appreciate the comment.

Unfortunately one solution does not meet all however normally Buy & Hold – Interest onlyWraps – Principal & InterestFlips – Interest only. 

Hi MattGood to hear about the sale process.My apologies i may have misread your quote i was under the impression you had thought that the Trustees of the DFT could claim the loss each year.Your revised understanding is correct.

MattI will then claim the interest as an expence and the "repayment" as income, so that way it is all tax neutral  (personal tax) ?All depends on what type of Trust you have set up. If it is a DFT then the answer is NO.

There are many reasons why client wish to utilise Lodoc / Nodoc style products so drop me a line and I can give you some suggestions.

No real benefit in having 2 offset accounts so put everything in the one.Probably an idea to start speading your sik and looking at new lender for your IP's

Salary should definately be going into the offset account not the LOC.With regards to the interest repayments on the new IO loan linked to the offset account this will depend on whom the loan is with. The type of offset account will vary from lender to lender.Some reduce the interest charged others you maintain the same repayment and the debt…[Read more]

MatthewSorry only just seen your post.Can you email me the request as i am doing about 40 a day at the moment and am likely to forget.Also need your email address to send it back to you anyway.

Yes exactly would suggest that is the way forward.

Nulify the advance repayments and if the line of credit is used to fund the deposit for an investment property or other investment then the interest will be deductible.

Simply boils down to the purpose of the original funds.Unless the original loan was an investment loan interest on a redrawn amount on an owner occupied property is not deductible.If the loan had been an interest only loan with 100% offset then you would have been fine.Need to separate the 2 account hence our suggestion of a line of…[Read more]

Hi thereUnfortunately it is too late to do this as the funds on the redraw wont be tax deductible.Be better off to set up the line of credit for the increased amount.Your Broker should be able to do this for you.

Hi thereYes it would be a separate loan but on the basis that 20% plus costs came to 200K then Yes the total loan balance on the first property would be $500K.Interest is only charged on the drawn down balance so assume that you had fully draw the loan of $200K then interest would be charged on a daily basis on the full amount.

Hi TiaNormally what we suggest to our clients is that they establish an investment line of credit against the security and use this to draw down and fund 20% of the purchase price of the new investment property and acqusition costs.Then on a standalone basis take out a separate interest only loan for 80% of the new purchase price on the security…[Read more]

Hi JackAny chance i could get you to email that request again as have deleted it from my Blackberry / desktop by mistake.

Hi SonyaYes i own 2 large blocks myself and have financed many for clients.If under 4 in the block you will get normal terms and conditions however 4 plus will limited to reduced lvr's.

I am with Terry sounds like an absolute mess to me and a red flag to the ATO.I would be avoiding the Banks as they would have no idea on loan structuring but keep things simple and separate.Use an offset account for non deductible debt and maintain good records.As long as you can support the loan by way of income there is no reason why you should…[Read more]

Tommy without being funny i would only talk to the OSR and get it from the horses mouth as your Bank and Broker arent the ones who will incur the fine and have to pay the FHOG back if the OSR disagree with your interpretation.

TommyHate to say from what i read she will not qualify for the FHOG and if you claim it run the risk of being audited simply because you refered to her as your fiance and this in its own right disqualifies her.