Hi SGOk all looks ok.On the basis that the LOC non dedcutible debt is not drawn at all get your lender to link a 100% offset account to the IO loan and have all of the rents and your salary going into this account.Drip feed the monthly interest repayments on the 2 IP loans from here.As mentioned earlier ensure you get your place valued even a…[Read more]

Hi SGOk all looks ok.On the basis that the LOC non dedcutible debt is not drawn at all get your lender to link a 100% offset account to the IO loan and have all of the rents and your salary going into this account.Drip feed the monthly interest repayments on the 2 IP loans from here.As mentioned earlier ensure you get your place valued even a…[Read more]

SGIs the loan P & I / IO, fixed or variable and with whom. ?Will you buying a new PPOR in the near future or renting for a while ?Do you have any other non deductible expenses ?

TessDont get me wrong I am not recommending in any small way that you take a LOC FOR your PPOR loan in fact the only given what you have told us is to take an interest only loan with 100% offset.Bank West Rate Tracker product DOES NOT have one attached.Also they are certainly  not one of 2 institution to offer such a product so think maybe he was…[Read more]

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Hi Star GWhat you are wanting to do is fairly common however a bit of care needs to be taken in order to ensure achieve the maximum return out of this decision.They are a few variable and your mortgage broker should be able to assist with these if he is experienced in investment structures. Difficult without additional information to make an o…[Read more]

Hi tessGood to hear that all the plumbers are gainfully employed elsewhere at the moment and not joining the finance industry,Just from the initial comments you made about his advice I hope he didnt recommend a redraw facility given what you told him otherwise I would have doubt over his experience in loan structuring.There is nothing to stop you…[Read more]

Hi KaneOk i havent checked the SA stamp duty scale but have you considered selling the IP into a Unit Trust structure, borrowing 100% of the market valuation and using the net suplus funds (difference between the IP valuation and the current balance) to pay down your PPOR loan.If you can get a higher valuation than $140K from a local real estate…[Read more]

Sounds like another Prolperty Spruiker to me.It is called 2 tiered marketing and unfortunately Brisbane is full of it at the moment.Just received a valuation back for a client who is using a similar firm and the difference between the valuation and the purchase price is considerable. Why not do your own home work and pay retail price or…[Read more]

Hi WhiteKnightFirstly welcome to the forum and I whope you enjoy your time with us.I have had a few clients do exactly what you have indicated in the Waterford area although the blocks have been big enough to enable a 2nd dwelling to be constructed on the land.If you are looking at small acreage and the zoning allows for dual occupancy then i…[Read more]

I am with Terry Not  so lucky.It is very simple if you cannot be on the loan with your current lender look at going elsewhere.Your mortgage broker should be able to handle this sort of enquiry as it happens on a regular basis.

Hi KaneI am assuming that moving into the IP is not an option.The course of action will depend on various factors: the State in which the properties are located, original purchase price and date of purchase, your marginal tax rate, how the loans are currently structured etc etc Would need some actual figures to make a recommendation.

Hi TessTo be honest i dont think your broker will be too keen on the idea of giving you back some of his commission.If you consider that as has been mentioned in earlier posts Brokerage commissions have recently been slashed by the Banks because of the credit crisis which means the average Broker needs to write more business than he did previously…[Read more]

The interest is not tax deductible so unless you are getting more than 7.62% net of tax I would look to pay the loan back.Nothing to stop you using the security to gear again for a new IP and claiming the interest as a deduction.Will probably still be positively geared but use the income to reinvest and go again.

RudiNormally your broker or Bank would give you this.

Sorry DamianNew trusts do not have appointors they have principals – the principal can also be trustee and beneficiaryNot according to Maddocks Lawyers in Melbourne. From their Trust website "Each new trust will have an Appointor whose role is to replace the Trustee if needs be. Although you have a choice as to whether an appointor will be…[Read more]

Wow Bugsy great first post mate.Did you pay Steve for your advertising.Payday lending isnt regulated yet but hopefully it will soon be so to avoid such predatory lending on the people who can least afford it.

The Cash Transactions Act requires institutions to advise of any large cash receipts and recent legislation changes to the Anti Money Laundering Act also requires a Bank to make investigation on suspicious receipts.In saying this from what you have mentioned I wouldnt think you will have any issue at all. Just make sure the funds are cleared and…[Read more]

Soudns good Jimmy.Can i ask you how many you own yourself ?

Which part of regional Victoria.There are a couple of builders here on the forum from Vic who are clients of mine so they maybe interested.