I seem to recall now that the govt introduced some tax rebates or similar to encourage people to deposit money a few years ago now.

Didn't CBA increase its rates by 0.45% yesterday, despite the RBA increase being just 0.25%? So far they are the only ones. Another reason not to use them I think.

Not much you can do really other than a sandwich lease. You buy an option on the property and then sell one to the tenant. That way if they don't take up the purchase you won't have to

1. Transfers on death are usually exempt.

2. Not really anyway. Gifting would result in stamp duties are market rates. I think they would still get the FHOG and stamp duty discounts.

3. Probably could be done if you were party to a new purchase with them. Don't think they would get a loan on their own for 2 reasons – 1. no income, 2. they would be using someone else's security.

By paying PI you would be paying more off the debt, but you can achieve this with IO by paying extra too. You then have the flexibility to reduce the repayments if need be.

But if you have no other debt, then PI should be fine. What ever suits your personality.

get a new broker i think.

You don't say if you have any undeductible debt – if you do you should be paying this down first instead of investment loans.

Assuming you don't, then you could use PI, but I would still suggest IO as you can save up the funds in the offset and end up paying the same interest. You also have the option of paying extra on the loans, like PI or even more, but then have the option of reducing the payments if you run into some cashflow problems unexpectedly.

Since you have no other debt, i would suggest you seriously look at using a discretionary trust.

Depending on your situation you could gift or loan the trust the 20% deposit to get started. You should then keep gifting (probably) money from wages etc into the trust. The property will become positively geared quickly and this income can be distirbuted to your wife. You then just keep repeating the process, probably adding another trust every 2nd property.

Good to hear.

Actually there is a point to the letter. Sort of

Supposed I owned a property for you as trustee. You wouldn't want me to go out and mortgage it without your consent. The is the principle they are applying – even though the trust deed would be permitting the trustee to mortgage the trust property.

Thats a lot of rent you pay, oever 50% of your income!

The first thing you need to determine is if youc an borrow any money and then how much. If it is not enough then you need to work out ways to increase borrowing capacity.

Once you know you can borrow then you have to determine the strategy. Work out cashflow projections and see if you can cope and then work out profits estimates to make sure it is worth while. Make sure you know how to use excel.

Then I would suggest you look at which structure to do it in. You should probably talk to an accountant about this.