[sundipbParticipant@sundipbJoin Date: 2009Post Count: 13]

August 16, 2016 - 12:18 pm

Thanks Collin for the reply.. The 2 properties are not cross collaterlised as i bought the IP property from a inheritance from a family trust couple of years ago.

So will it be as easy as that?

1. Change PPOR loan from P&I to IO only.
2. Delink offset from PPOR to new PPOR.
3. Do i start making P&I payments in the PPOR or keep that as IO as well?

thanks
Sundip

[sundipbParticipant@sundipbJoin Date: 2009Post Count: 13]

August 16, 2016 - 11:51 am

thanks collin for the reply.
No i haven’t been using the redraw facility, i have been putting all my extra cash in the PPOR offset account. I have only been making min payments for the PPOR.

i only 4 accounts.
1. PPOR everyday account (offset account)
2. PPOR loan account
3. IP loan account
4. Credit Card account

I have got the NAB choice package home loan account which is $395 per year.

[sundipbParticipant@sundipbJoin Date: 2009Post Count: 13]

August 16, 2016 - 11:42 am

Thanks for the reply Collin.

This is my structure at the moment:

1. PPOR Loan = 360K
2. PPOR Offset Account = 100+K < – this is where all my salary & IP rental income & additional cash goes into.
3 Repayments for PPOR = P & I
4. Repayments for IP = IO
5. IP Loan: 500K < – Rent for IP goes into 2. (i.e in the PPOR offset account)

Hope this helps.

[sundipbParticipant@sundipbJoin Date: 2009Post Count: 13]

August 16, 2016 - 10:40 am

Thanks for the reply benny. I forgot to mention i also have a IP property.

Lets make a stew out of this topic (yummy)

1. PPOR = 25K special Levy due in dec 2016
2. 100K in offset account
3. IP property

How do i go about switching my IP – > PPOR and my PPOR – > IP ??

What are the tax complications with this? And how will this affect my tax deductions???

[sundipbParticipant@sundipbJoin Date: 2009Post Count: 13]

August 15, 2016 - 3:27 pm

Thanks for the information guys.. I have had the property for nearly 9 years and have been aware of the problem, however we didn’t expect the bill to be 3 million to fix the building. This is water leaking issues, painting..etc etc

How i’m just wondering how do you go about switching your PPOR to a IP? Can i re-finance my PPOR property and buy another property? I have got 100K in a offset account.

I just want to know if the 25K repair cost will be deductible after i make it a IP property? with regards to timing.

[sundipbParticipant@sundipbJoin Date: 2009Post Count: 13]

September 23, 2014 - 12:28 pm

Thanks for the tips guys however i’m still in a confused state, sorry for the late reply been nearly 3 months.

however recently apartment sold in my building same as mine for 450K. My situation as follows:
Apartment valued at 450K
Loan Amount 192K & Available Balance 97K (paid extra)
I have an extra 35K coming to be from my parents as gift.

Our plans are is to live this apartment for another 5 years, been old sckool as i am my parents always said to pay off all your loans. So should i sink the extra 35K i get as a gift into my PPOR loan which will bring my available balance to 132K. Since we wont moving from our PPOR for some time is it than better to borrow $$$ against my PPOR since the equity amount will be 318K. Down the line after 5 years we are not quite sure with this PPOR will become IP or Sell it.
Oh have a paid to much off this PPOR to become a positively geared property and there is no tax benefit from it now.