Mark

CC is a method of securing loans. It benefits the bank more than the borrower as the bank will usually get extra security.
LOC is a loan product.

What would have been preferable is for you to have got a loc on your property and used that as the 20% deposit and then borrowed the remaining 80% as a separate loan.

You can fix things up now if the investment property has increased in value. All you need to do is to apply for a variation of security and release the PPOR from securing the investment. ING will need to do a new valuation on the investment and if the loan is 80% or less than this you should be ok.

Then you should set up a LOC on the PPOR – same or different bank.

Then get the new IP loan at 80% of the value – same or different bank

It may benefit you, but only slightly as the costs claimable will need to be proportioned on how long you have owned the property during the financial year.

some good websites:
http://www.lawcentral.com.au
http://www.trustmagic.com.au
http://www.taxlawyer.com.au

No, thats not correct. It doesn't matter if the trustee is a company or an individual, the family law courts can still make orders for trust propertry

I think car spaces are a waste of time and effort – but no personal experience in this area. Think of the opportunity cost – ie what you could have invested in instead.

What happens to your return when the state governments puts up the levy on car part spaces – maybe to help reduce the number of cars being driven?

What will happen if another couple of car park buildings pop up nearby?

The $11,000 loan could be set up as a LOC or another IO loan with redraw. either way is fine.

In practice $11,000 is not much, so it may not be worth setting up at this stage if it is not needed. Maybe best to wait for more equity

hi RIchard

I have put many a client to St G and never had a problem keeping the loans uncrossed.

Yes there is a difference between the 2. Different countries have different laws. I would be looking at using an NZ trust.

You should be careful about borrowing money and putting it into an offset account and then investing it. The connection between the  borrowing and the investing can be broken and the tax deductibility denied in some cases, especially if it is mixed with other funds.

A better way would be to use a LOC as the money is available but not used until needed and no interest until it is drawn out. interest rates can be higher, but it is much safer from a tax point of view.

Another cheaper way would be to use a IO loan with free redraw and then borrow the money at settlement and redeposit it in the loan account until it is needed.