They will generally treat you as self employed and all you need is the last 2 years tax returns.

The lender probably won't lend if they know about you doing vendor finance – especially at 95%.Have you considered using the equity in the existing property or maybe even a personal loan>?

You will need a conveyancer or solicitor to help with the transfer too.Maybe you could think about buying him out?

yes, basically. But you don't really need to change the loan to PI or pay it off. Personal choice I guess.

hi NicoDon't worry about paying down the loans at this stage. You first want to get rid of all personal debt. So paying down an investment loan will delay this and it will end up with you paying more tax.Once you have paid down the PPOR loan and any other personal loans/credit cards etc then you could start paying PI for an investment. But even…[Read more]

same principles apply whether you are renting or buying again. Deductibility depends on what the borrowed funds are used for.

Hi WeneverYou have heaps of equity so heaps of potential. The first thing you should consider is making both loans interest only. Set up a LOC on each property for the equity up to 80% LVR (this may not be easy in this climate).Then you need some expert tax advice. You can structure the investment property in such a way that will pay off your home…[Read more]

Deductibility depends on what the borrowed funds are used for. So if you increase the loan to buy something for an investment then it may be ok, but if you increase your loan to get funds for the new house it would not be deductible as it will be a personal expense. Same with the recent increase to pay the crdit cards and car.

investrental wrote:
TerryJust wanted to check here, I am reading that the second loan is on the first home and if so I thought that would not be tax deductable.  I would have thought that the second property should have a 80% mortgage using the first home equity as the deposit to get the best tax savings.Then subsequent purchases could be…[Read more]

Yes, its not easy. St G will also want you to have been a customer for at least 6 months, same with Westpac.

Factor in placing the extra funds from the tax savings into the home loan too and it gets even better.And, maybe buying high yielding shares with a LOC and getting a margin loan and letting both the margin loan and the LOC capitalise while you put all dividends and tax savings into the home loan.

St G, Westpac, Suncorp can still

Any lender will borrow that much, but what you want is for them to lend!And yes there are still lenders who will lend up to 95%, though 90% is more common.LOCs are usually 80%, though some are up to 90% with LMI.

It is your parents main residence/? or have they ever lived there and do not own another property? If so they may claim the CGT exemption.If they have another property then i think they will be up for CGT>

thats about the limit of my knowledge. You will have to check with your accountant regarding depreciation as it only applied to properties purchase after a certain date.based on the about I would say your taxable gain would be no more than $50k. – but i am not a tax agent so may be wrong.

Oh, OK. You can only have 1 main residence at any one time.So I would think you can claim it as your main residence for the time you lived in it up to the time of moving out. So you would need a value for this date.You would also need a value at the date you moved back in as you can then begin to claim it again as your main residence.You should…[Read more]

Hi JOhnYep, keep saving into the offset if you have no other personal debt. Then ideally you will have a larger deposit for the PPOR when you do buy it.

I've never actually known anyone who has done it. I am just doing some sums now and think with $150k of equity you could potentially pay an extra $10k pa off a home loan.

Sounds right. They will need to see all proof of incomes etc again. While you are at it tell them NAB have offered you 5.79% and you may leave if ANZ can't match.Make sure you get the loan IO for as long as possible, 10 years I think, and with the offset account attached.

eg. if you have a $500,000 house with a $100,000 loan left.Set up a second loan for $300,000.Have the original loan of 100,000 still, and don't mix the 2. The $400,000 can be used for investments only and it could be a LOC or a IO loan with redraw.