Interest only if no debt on principle place of residence

Thank you everyone for your help.

Michael, whereabouts can I find this list please?

Thank you.

Thanks Richard.

Much appreciated.

Thanks for the link.

In light of this, I was contemplating purchasing first IP in personal name – not joint – for tax purposes as my income is taxable, taking the LOC on PPOR for the deposit, IO on IP with offset account on both LOC & IO.

Then, for the second and subsequent IPs, putting in joint names as second income will increase in years to come, with deposit from PPOR LOC, IO on second IP as per the first, with an offset account.

However, reading the info. re. trusts & the importance of the correct structure before starting out – is it better to create a trust and do it that way?

I have been told by a loan broker that we should just do LOC on PPOR for the purchase of the entire IP – this doesn't line up with what I'm reading here as it will not help us to purchase multiple properties down the track.

Any thoughts would be much appreciated.

Thank you.

Thanks Terry,

yes, certainly not the PPOR – his reasoning was that if something happens the bank will come after your money anyway – no matter how the loan is set up –  sounds like the easy option but not good for further investing.

Thanks.

We didn't get that far, we've only seen him once.

He suggested LOC with an offset account so that we can reduce the payment amount should my wage drop (I'm contemplating doing part-time study later), and as I am the only wage earner at this point in time, he said getting the LOC on the PPOR would be the easiest way to get the loan.

However, I don't see it being a problem getting a loan on the IP with 80% LVR as the deposit will come from the loan on the PPOR.

He suggested using a loan for the deposit as the interest on this is tax deductible.

Thanks.

Re. offset account – no, not borrow to place money into the offset, use current savings.

After my research here I think it would be good to see him again and work through it as I think the LOC for deposits and then separate loans for IPs is a better setup – with offset accounts attached to each do you think?

Terry – previously you wrote:

If you have no non deductible debt then it would be ok to use PI loans for property – especially if this is what you feel comfortable with.

But, by using IO loans you will be paying less per month in repayments which may mean that you could afford more properties.

Does this mean that it is better to use IO, as the deductible debit will be the loans (LOC on PPOR & IO loan on IP) and the interest payments on the loans for investing in IPs is tax deductible? 

From what I understand, PI means higher repayments and less tax deductions – so in theory, to wait for the property to increase in CG, then re-draw for the next deposit is the way to go?

Thanks.