Welcome Andrew to the forum and I hope you enjoy your time with us.

HydraWhilst in mimi's case and in most case investors borrow 100% of the purchase price + costs it is how it is funded that is important.Personally I wouldnt use my own PPOR as cross security for my investment property and that is why it is important to split the loans.What you would do once the IP has increased in value is shift the debt solely…[Read more]

Hi MimiYes if we do the figures.PPOR valued at say $275,000 x 80% = $220,000Existing mortgage of $68,500 linked to offset accountInvestment line of credit of $151,500New Invt property of say – $300,000Standalone loan of $300K x 80% = $240,000Balance of $60,000 plus acqusition costs funded from Investment Line of credit.IP 2 – Repeat as above.Hope…[Read more]

Hi HydraThe way around it is to take out a totally new loan for the investment rather than increase or redraw the existing PPOR loan.By splitting the PPOR and Line of credit then the loans are the interest is easily identifyable.In essence you have it correct with a little massaging.

Hi BenLike your thinking but unfortunately in todays climate you wont finance it that way.Lenders will lend against the purchase price or valuation whichever is the lower and realistically you will not get more than 90% LVR (Sure there are still the odd lender offering 95%) so will probably need most of your deposit just to settle.Of course i…[Read more]

Thats fine mimi anything you dont understand just ask.This is what the forum is for.

MimHate to disagree with Aaron but be very very careful in just redrawing the funds in advance on your home loan as the interest will not be deductible.It is imperative that you establish the structure correctly to maximise the deductability of the interest and ensure both interest savings and flexibility.The cleanest easiest way is to look at…[Read more]

If you use your own $30K as deposit then you will loose the Tax deductability of the interest.If you borrow $30K with the purpose of using the funds for a deposit for an IP then the interest becomes deductible.You are unable to pay down the current PPOR loan and then redraw the funds as this again fails the purpose test.A separate new loan would…[Read more]

The rent you receive on your old PPOR wil be added to your Taxable income.Unless your rent on the new premises you are residing in are used for any form of business then unfortunately you will not be able to claim the rent as a deduction.

JRJust be careful that a Financial Adviser doesnt try and swing you into a managed fund or direct share investment.Most FP's do not like property as they do not earn a commission from you buying an investment property.As a Financial Planner myself I often see or speak to clients who have been given poor advice from other FP's who unfortunately…[Read more]

Start by sticking the $30K in a 100% offset account linked to the mortgage.This gets you the best of both worlds. Reduce your non tax deductible interest payable as well as having the funds on call if you need them.Do not use the funds for investment where you have non deductible debt.Long term if you decide to purchase a new IP.Take out a s…[Read more]

Post – 7% discount to borrowers of $500k – NO.Maximum full doc loan without LMI is 80%.

Hi GregFirstly welcome to the forum and I hope you enjoy your time with us.Wont go into the warning speech about "buying with friends or relatives" as i think you have learned the folly of your ways there.In answer to a couple of your questions raisedShould I be looking at interest only loans for either/both properties? Yes i would recommend this…[Read more]

Bluegrass is correct with the equity you have and depending on your marginal tax rates you could buy 2 and still reduce your tax position.Structure is the key to successful investing along with the right property.

Nothing to stop you acting for yourself when selling the property however for a small outlay in engaging you will be legally protected if anything goes wrong.As the Vendor you are responsible in drawing up the purchase contract, providing your buyer with answers to all of their search requests, organising the settlement date and discharging any…[Read more]

JimmyRemember just because 120 DA approvals are being issued each year it does not mean that 120 new homes are being constructed.The DA will have a limited lifespan and you will be suprised how many expire with nothing being done due to lack of funds, change of mind etc etc.As long as the township has a suitable population for lending purposes…[Read more]

Yes 0.7% off on loans of $700K + ($750K + with most )

Not the days of 0.7% + have almost been (unless the loan is $1M ++) and gone and in fact most arent offering 0.7% unless the loan is over $700-$750K.Of course it all depends on what 0.7% off. If the lenders SVR is 0.2% higher than its competitors then i would rather have 0.55% off a lower benchmark rate.Some of the non bank lenders have a variable…[Read more]

Hi NitMust admit i havent had any issues with valuations coming back short on unit properties in Brissie although there are certainly some very hot areas around the City at the time.As long as you structure your loan correctly you wont have an issue when you decide to rent it out.Normally suggest for clients in your position an interest only loan…[Read more]

This can vary from State to State.If you are merely at looking to put in an verbal offer then phone the selling agent with your price, terms and conditions and let him take it to the Vendor. Alternatively get your Solicitor / Agent to draw up the terms of offer for you.In certain State (Qld for example) you are better of to proceed to Contract…[Read more]