Sorry appreciate Sebastian is new to the forum but his information is incorrect.

Most lenders will go to 90% of the property value and will not charge you a higher rate 

Hi Te

Firstly welcome to the forum and i hope you enjoy your time with us.

The introduction of the new National Consumer Credit Protection Code on the 1st Jan 2011 places a greater emphasis on lenders and introducers to ensure that clients can trully service their new borrowing and as a result many lenders including CBA / Colonial now request Business Activity Statements where the borrowing is over 60%.

This is not say that every lender requires this and many lenders still allow an 80% lend on a stated income basis.

Whilst your current broker does not believe he can finance future borrowing you may well find that an alternative lender will look more favourably at your loan requirements.

I am sure DHCP 's Mortgage Choice Broker suits his requirements but remember they are a franchise and the level of competance will depend on the experience of the franchisee.

A good independant broker especially one who owns one or two investment properties themselves should be able to assist you.

You wouldnt go to a Dr or had never done an operation but had read the surgeons manual and therefore you shouldnt use a Mortgage Broker who doesnt own any investment properties.

Drop us a line if you need further information.

Cheers

Yours in Finance

Hi Brendan

If you are looking at advice in relation to shares, investment or any financial advice then you will need to see a Licensed Financial Planner.

Must admit i cant recommend anyone in particular for Sydney but someone else may have a recommendation.

Cheers

Yours in Finance 

Hi Nath

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

To be honest you could do both it is just a matter of how you structure it to maximise both your returns and legal Tax deductions.

Without knowing more about your current financial position it is difficult to comment on specifics but it essence i would suggest you looked at the following:

1) Initially place the 70K in an offset account linked to your PPOR giving you interest savings on the non deductible debt whilst you are deciding which way to go.
2) Based on the fact that it is unlikely your PPOR will ever become a rental property in the forseable future look to pay down 70K off the principal balance.
3) Take out a new loan (Do not use a redraw loan) secured against the PPOR  for the 70K plus whatever extra amount is required to bring this loan upto 20% of the potential new purchase price plus sufficient to cover your acqusition costs.

Assume new purchase price = $300,000 then 20% would $60,000 and if acqusition costs only came to $10,000 then a sub loan of $70,000 would be sufficient.

4) Take out a separate loan with a new lender for 80% of the new purchase price of the investment property.
5) Look to revalue the IP security is say 12 months and draw this loan back upto 80% of the increased value.
6) Use the additional amount drawn to pay down the 20% secured aganst your PPOR.

Repeat until retirement.

As i say i would need exact numbers and further details to provide you with some information but in essence the theory is the same.

Hope this helps. Drop us a line if you need further information.

Cheers

Yours in Finance

Hi Jamie

Appreciate the comment and John be more than assist you with the struucture going forward.

I am currently in the UK altough leaving next weekend so if you want to shoot me an email be more than happy to make a time for a coffee and catchup once i get back on board.

Cheers

Yours in Finance

Hi Julie

Wont comment on the area as i am not an expert on the surroundng suburbs but flexibility in regards to the loan structure could be very important for your future planning.

Personally i would make sure your mortgage broker suggests a Interest only loan with 100% offset account so that if you do decide to rent the property out you can protect the deductible interest.

Not all lenders allow an interest only loan for a PPOR so make sure he / she has some ideas as to what your future goals are.

Cheers

Yours in Finance  

Hi Dean

Sorry being in the UK still on holiday for another week so a few hours behind the rest of the world.

Sure Jamies answer was satisfactory but feel free to post any other questions and I will happily add some imput.

Cheers

Yours in Finance

Hi Losty

For once i have to say I disagree with Jamie on this one.

In order to structure the loan for the most Tax effective way i would not switch the current PPOR loan to an interest only loan and then use the funds sitting in the offset account as deposit for the new IP.

By doing this you are only able to claim the interest on the new IP loan only.

I would carry on making P & I repayments on your PPOR loan and extra payments were possible.

Then i would get the current PPOR revalued cancel the advance repayments and set up a totally separate interest only loan as deposit for the new IP. (Do not use a redraw as previously mentioned and unless the interest rate is similar to an interest only loan dont take out a LOC).

Structuring the loan this way will maximise the deductible interest whilst reducing the non deductible debt.

Hate to disagree with a former poster but dont think you will find too many lenders / insurers allow / accept a vendor financed second mortgage so think you can forget this as a way to generate a deposit.

As the current loan is fairly highly geared I would also probably look to use a separate lender in order to reduce the overall LMI costs. A good investment orientated mortgage broker should be able to give you some options.

Cheers

Yours in Finance 

Hi wallalong

As Jamie has mentioned an interest only loan certainly will give you flexibility when it comes to repayments.

I would however certainly suggest you look at what structure / entity you might buy any potential invesment property in especially as one of you is likely to be off work for the coming 3 years. Maximising your deductions both cash and non cash is imperative given the reduction in cash flow.

A second opinion from an adviser who specialising in assisting investors wuld be well worth it.

Cheers

Yours in Finance
  

Hi boshie

Hard to comment without actually seeing your husbands actual Tax Returns but with the potential rent being taken into consideration and with different lenders all calculating serviceability slightly differently especially when it comes to investment loans I would certainly look to get a 2nd opinion.

Some mortgage brokers have little or no experience when it comes to investor loans and it makes me laugh when they provide advice when they have never actually purchased an IP themselves.

Cheers

Yours in Finance