YxYHate to say your accountant is wrong. if the property is sold to a Trust with you as Trustee and you borrow 100% of the value then you are able to claim 100% of the interest deduction.The funds you raise will be used to purchase a PPOR as there is no loan on the original property.All 100% legal and acceptable to the ATO. Might cost you some…[Read more]

Hi PeterAny new loan secured against the property for equity release will need the approval, consent and signature of all parties to the title. Easiest way is to take out 2 split loans (some lenders will allow you to have the loans in individual names i.e you and your wife and the other in the name of yoru sister and her husband) with an u…[Read more]

HongThe moment the property is available to be rented out the interest can be claimed as a taxable deduction.it is therefore very important to ensure that your mortgage broker structures the loan correctly for you from the start knowing your future goals so as to ensure that you obtain the maximum deductions.

Thanks Lisa interesting to know.Also as a securitised lender every loan is mortgage insured which will also restrict your future investing.

Without refinancing why not merely look to refinance the car loan as a secured or unsecured loan.The costs of refinancing the unsecured debt will be substantially cheaper than that refinancing the home loan and you may end up savings 5-6% to boot.What rate are you currently being charged and with whom ?

Hi GeorgeI think you mean you will be buying the property as a PPOR rather than an IP and claiming the FHOG and stamp duty concessions.As has been pointed do not pay  lump sums into your loan and then redraw it for personal purposes and expect to obtain a interest deduction as the purpose test will not qualify. Also you will be suprised how many…[Read more]

MooseOther way around.Rams are a securitised lender so therefore ever loan irrespective of the LVR is mortgage insured.You therefore have 2 levels of underwriting and with LMI tightening up policy across the board I can think of many other lenders I would approach first before i go to RAMS. 

MooseheadYou must understand that several of the major lenders are rewarded on a variety of sales targets.Retention of loan business is just one of the target areas and therefore a cross collateralised loan helps them retain your business due to the complexity of having to untangle the mess.Most Bank jonies are after every dollar they can get so…[Read more]

Hi PeterGood to hear.What are the early repayment fees for say the first 5 years.

LetThat is not quiet correct.With 100% finance on an ip you will miss out on FHOG, thats in VIC. The First Home Owners Grant is a Federal Government innovation which is ran and admistered by the Individual States and Territories.Purchasing an investment property first will not disqualify your application to qualify for the FHOG in any S…[Read more]

Nothing to stop you selling the existing PPOR into Trust, paying the stamp duty but borrowing 100% of the valuation and then using the funds to purchase your new PPOR.The total amount of the interest raised is then tax deductible.Remember to structure your new loan correctly incase a few years down the track you decide to do it again.

Mal2 quick points:1) You may find it harder than you think to obtain a loan if you are a recently commenced Contractor especially if LMI is involved.2) You are able to make application to reduce the tax deducted from your weekly pay if you are employed and in receipt of a Payment Summary. Just lodge a 221d Tax variation and you rwill get the same…[Read more]

AdamTry Steve Hodgkinson who is a partner at the Gold Business Group at Southport.Steve has been my Accountant as well as a very good mate for the last 12 years and certainly knows his stuff.He can be contacted on 5532 2855.Tell him I referred you as most decent Accountants are not taking on new clients and at least you will get past the…[Read more]

DaveI think you will find it hard to avoid the GST as the rules now are quiet clear and simple.

Might want to do a search on the Investors Club (Club what a lauf).They are a money making marketing organisation.

ChrisYou may also like to refer to my response to your other post.Certainly not every lender offers 100% offset especially on interest only but there are a few and a good mortgage broker should be ale to identify these for you. In effect if you have a loan of $195K and $15K in your offset then your monthly interest expense will be calculated on $…[Read more]

As Simon mentioned if you are referring to a FICO score or similar you are not referring to lending here in Oz but in the US.Grab a copy of your credit file and see what the lender will see and you can make your own mind up.Alternatively once you have a copy get your mortgage broker to scour over the credit file and give you an assessment.

You bet they suggest you cross collateralise your loans together as once you are deep in with one lender or broker it is very difficult to get out and release securities.Why would you pay for something the average broker does for nothing especially as half their consultants probably dont have more than a couple of properties in their…[Read more]

Try Lewis O'Brien Solicitors in Balwyn.They have done 1 or two themselves.There website will give you a little more informationhttp://www.lawyer4nix.com.au/menuvendor.html  

Why not structure the interest only loan with a 100% offset account on deposit all of your funds into this account to save you interest.You can then take your time deciding whether any of the eixtsing properties or infact a new property will be your PPOR.Swing the offset account over accordingly once you have made this decision.