Any suggestions/advice greatly appreciated!!!

Sell house invest 50% in 2 IPs at around 200K+15K costs and 10K wipe out debts.So loan on each around 120K
Cost at 6.5% interest only $7,800

Rent return around $220/week (Im getting that in Adelaide for comparable property)
$11,000 return each week.Surplus $3200each or
$6400/yrs or Around $125/week—yes some out goings

Rent at $350/week and you probably have some spare from Your rents to help out.
Plus you get the capital gain on 2 IPs
Ever thought of taking on a female Uni student lodger with you(Country girl you know what I mean)? In either situation could be worth $80-$100/week.

Just some quick thoughts.
John

I have emailed you directly.

john

melbear / Geronimo

I work for a goverment department closely linked with the ATO and I can confirm that the ATO can certainly request a bank / lender to provide a clients loan application which must be complied with.

In my position I can request any bank / lender or any other oganisation / company / person( the legalisation I work under gives me this power) to provide me with the information I need including a clients loan application, the bank / lender must comply with my request or they will be prosecuted / fined. It is as simple as sending a notice to the bank.
You will find most major banks/ credit unions etc have a whole department that deal with requests for information from goverment departments such as the ATO and law enforcement agencies etc.

I am consistently surprised at the difference to what people declare on a loan application and what they declare to the ATO.

I have also been informed that the ATO is going to be looking very closely into applicants on Lo Doc Loans and verifying the info against your tax returns.

matthew

Geronimo

I not sure how the ATO will select which tax payers to audit / check.
If I was having a guess, I would say they would do a search on tax payers that have a rental property ( this would show on their return under the rental schedule) and are self employed ( abn listed on their tax return) and have a taxable income that doesn’t reflect their ability to service a investment loan ( eg claiming $10000 of interest expenses for an investment loan and their total taxable income is only $20000 ). The ATO would have a computer system which would do this type of search , quite easily.

matthew

By the numbers you should not continue to pay the exceedingly high interest rate on the home loan and the even higher numbers on the credit card debt.

The larger banks seem to be hovering about the 7.07%, even then the gain of switching to that rate would more than offset the fees and charges accumulated from changing loans (this is a Offset loan rate though). Just on a simple level you pay $1500 approximately less on the first year of a $200,000 loan if using a 7.07% rate over a 7.82% rate, just beware of ‘honeymoon rates’* that may jump up as high as 7.82% later…. some of those 7.07% ones can also start as ‘honeymoon rates’* as well.

The destruction of credit cards sounds good if you have problems spending up to your limit and not paying them off.

Just note that refinancing a loan may mean you need to take out about $210,000 to cover the credit cards, the previous loan and application and exit fees, on a 25 year loan and at the basic 7.07% that would still cost you about $343/wk.

* A Honeymoon Rate for those even simpler than myself [withstupid] is just an initial interest rate offered by the financial institution, usually only for 12 months before reverting to a much higher interest rate.

Unfortunately I have noting to add on the IP front though.

To sum up I would seriously consider refinancing if I were you, even though my recent personal investigations showed I wouldn’t really be better off by refinancing I am sure more informed members could point you more clearly in the right direction.