The fees would be nil under a prof package and then you have the rate discounts too – but an annual fee.

You will have to ring a few valuers in the area that the property is in and ask them if they are on NAB's panel. Then you need to contact your loan person at NAB and tell them what you are going to do and confirm they will accept it. If they won't remind them it is NAB policy.

Just realised you may be applying for more than 80% loan and would therefore have the LMI people to deal with. If that is the case it may be harder.

try looking at the various tenants union websites. do a google search for your state.

Thats the one. There are heaps of different calculators on the http://www.investmentpropertycalculator.com.au website

Hi

I would suggest you do the sums on 3 options:
1. sell none
2. sell 1
3. sell 2.

And just see how it will leave you before and after. Then you have to weigh up the difference and see if it is worth the costs and hassle of selling.

There are also other options.

1. Sell one and immediately buy another. This will hurt with CGT and Stamp duty but will save you a heap of tax in the long run by shifting the debt from non deductible to deductible.

2. Sell your half of one to your spouse or vice versa. Depending on the State you may be exempt from stamp duty, but will still have CGT – but on a smaller amount. This will free up a bit of cash to pay down the PPOR loan.

3. Sell to a trust. This may end up costing more in the short term but may have longer term benefits. Would also help if you are self employed as you can divert income into the trust to offset any losses.

Generally I think it is worth while considering selling to pay down non-deductible debt as it will save tax and propel you to greater income in the long run.

hi D

I think you will find the banks are required to give you a bit of leniency, especially with the owner occupied one. Try to ring them again and talk to the right section. They are generally ok as long as you keep them informed and tell them how you are going to get out of the problem – such as selling one property. If you have equity this will make them even more ok with it. However they could default you and this would show up on your credit file and this will make it very hard to get decent finance in the future – up to 5 years..

I have a friend who has cancer and he rang up his bank and they put all his repayments on hold for about 6 months. His loans were IO and his LVRs were around 80% too. Westpac is his lender.

Its not a matter of one or the other but both!

I would suggest you avoid cross collateralising the properties. Keeping them as separate banks will help this. I also suggest to keep a bit of the LOC for extra costs or for emergencies.

LMI sounds costly, but when you look at it over the life of the property it is insignificant. It is also tax deductible.

So if you were to buy a $250k property, I would be included to use a 90% loan with 10% deposit and costs coming from the LOC.

The ATO isn't really concerned about hybrid trusts – just the uncommercial use of them.

If 2 houses are cross collateralised, you basically need the banks permission to sell one. This is because the bank holds the title as security. So they will want a valuation on the remaining house to see if it is enough to secure the remaining loan.

If you had 2 houses with the same bank, but not cross collateralised then you don't need to release the 2nd security so no valuations needed.