All Topics / Finance / Best Stratergy?

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of mi65nimi65ni
    Member
    @mi65ni
    Join Date: 2012
    Post Count: 3
    February 3, 2012 - 5:16 am

    Hi there.
                New to the forum. I am excited about investing as i've finally got the misses starting to come around.

    Heres what Im thinking; I have just renovated my kitchen and the property has naturally grown in equity. My approx value is $330K oweing $210K with $30k available in redraw. (Which i would like to keep available.) Sooooo, do I:
    1-   Get a LOC on PPR keeping $30K in redraw to 90%LVR and use it as a deposit (paying LMI on PPR and possibly on IP)
    2-   Refinance my PPR to have $30K in redraw and a 5% deposit for IP (paying LMI on IP mortgage)

    As far as I'm aware both situations would allow the claiming of interest.

    Thanks Heaps
    Nathan

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    February 3, 2012 - 5:43 am

    I'd opt for option 1 so as you can limit the amount of LMI payable.

    Your broker/banker should be able to run through some scenarios with you on the cost/benefits of a few options.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    February 3, 2012 - 8:27 am

    I would agree with Jamie on his suggested strategy.

    Why not shoot Jamie an email and get him to work some numbers for you.

    You be suprised as to the varying lending options out there and as a Broker he will be able to come up with something for to suit your needs and requirements.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    February 3, 2012 - 8:29 am

    Deleted Post.

    Got carried away and pushed the Post button twice.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of melvin257melvin257
    Participant
    @melvin257
    Join Date: 2011
    Post Count: 6
    February 6, 2012 - 12:08 am

    Hi All,

    I have a PPOR property and i don't believe with the current market I have any substantial equity on the PPOR. However I have around 40k in my redraw. I have an interest only loan with offset account in my PPOR

    Scenario

    Investment loan (House & Land) $ 416k
    Deposit Paid – $13200
    Current Deposit saved $ 40k.

    What would be the best structure I should look at for Investment Loan which would make it easier to diffrentiate with tax deductibe loan and non tax deductible loan. I am new to this and would really appreciate anyone's help / advise.

    Thanking all in advance
    Regards,

    Melvin.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    February 6, 2012 - 1:04 am

    Hi Melvin

    Ok what i would suggest is get the lender to cancel the redraw on your PPOR and then take out a new loan split for the same $40K.
    This is to be an interest only loan and will have a separate account number and be easy to identify the interest.

    You can then use these funds as deposit for the new investment property.

    After all of this however just make sure you dont cross collateralise the loans.

    If you are using a separate lender there will be no issues.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

Viewing 6 posts - 1 through 6 (of 6 total)

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