Hi TimYes i am an advocate of interest only loans for a multitude of reasons.With regards to +cash flow properties your rental income will be added to your other income for the year but remember the interest and other cash and non cash expenses can be deducted from this figure.

Are you sure that the Contract was subject to the purchasers receiving approval from the FRIB ?

Yes certainly makes sense.The limit amount is the amount considered as your current liability. It is the same as having a credit card with a limit higher than you actually require – it may effect your borrowing capacity.

Hi AnneDont worry so does Cameron.

HybridYes that would be fine. As long as you keep the home loan portion and the LOC separate.Link your offset account to the home loan and use the LOC to fund deposits and acquisition costs.Just ensure to maximise the interest savings you have all of your salaried income and rents going directly into the offset.As Terry has mentioned to utilise a…[Read more]

Hate to say the statement about selling a commercial property on retirement is incorrect. You will pay CGT exactly the same as you will if the property was residential.My opinion would be to start with a small residential IP and then move forward from there.More importantly is to ensure that you structure the loan correctly. Try and avoid cross…[Read more]

You could look at a 106% home loan which maybe enough to cover your costs as well as the original purchase price.Alternatively if you can access the equity in your IP then you could reduce the borrowing amount.With the higher LVR lends lenders are wating to see good stability in reagdrs to employment and residence but as long as you can provide…[Read more]

TenorBSometimes take the plunge can be daunting but worth it.Clients dont like to pay uncessary costs but sometimes expenses such a LMI are merely an opportunity cost and can help you move forward when equity is tight.Correct structure is a lot more important for achieving your long term investing goals than trying to save a quid or too on Bank costs.

ME are a funny organisation to deal with.Excellent on the mum and dad home loan but anything out of the box is just not for them.It might not be a matter of a higher interest rate and fees it might just merely be a NO we wont do anything.

Hi TimYou are limited to what you can do as part of the loan is fixed however i believe if you were prepared to break the fixed rate or it is close to expiry then you could structure things a lot better.If the property is being rented out then you are able to claim the interest as a deduction and all of the other expenses such as rates etc. The…[Read more]

Just to correct an earlier post.You are required to be GST registered if you turnover more than $75,000 Per Annum not if you earn more than 75K.As has been stated you are required to register for an ABN if you are in business.

I dont think it is a matter of the Landlord using the rental increase as an excuse on his increased land tax however with the current rental climate being what it is a landlord can increase the rent without any excuse and long as this is considered a fair increase the tenant has 2 choices.

PeachLand tax is charged on all property holdings subject to certain thresholds. These may include the occupancy i.e whether you hold it as a principal place of residence, investment etc, the name or entity in which the property is held. the State in which the property is held and the number of properties held in your portfolio.In a nutshell it…[Read more]

KylieHopefully this is a general statement.As for financial planners- no disrespect to them, but most have no idea, and only push shares, mgt funds and things they get commission on, and only do 1 subject in their course for a few hours on property. Most would earn less than you and have less savings than you more likely.Must admit i havent done…[Read more]

LuckyOne issue you will have with the strategy you are looking at is that the interest charged on the new loan will not non tax deductible as the purpose of the loan is to contruct a dwelling for you to reside in.If you are wanting to retain the property as an IP once the other property is completed you may wish to consider selling your current IP…[Read more]

Hi PaulNo certainly couldnt suggest that you switch either loan to a LOC.If you are suggesting that you look to take out a LOC on the existing securities (I have a feeling they will be cross collateralised then) then this is an idea and the funds could be used as deposit and acquisition costs for the new IP. Then look to take out a standalone loan…[Read more]

Firstly as Terry has mentioned:1) In Qld if you purchase an IP and then a PPOR later you are still entitled to receive the FHOG as long as you havent occupied the property.It sounds to me like you may wish to buy a PPOR at a later stage and therefore I would be careful structuring your loan for an IP so that you can actually have your cake and eat…[Read more]

LuckyDo you want to retain the current PPOR as well as any investment or will you be looking to sell this to buy the new property ?

LuckyDo you want to retain the current PPOR as well as any investment or will you be looking to sell this to buy the new property ?

I think as you are in Melbourne and Cameron has answered your post and is also in City i know who i would be calling.