Thanks Terry.

That make it clear.

Hi Tom,

You assumed correct. I’ll be staying at current PPOR, where LOAN 2 is used. I’m buying another IP.

I’m trying to divert LOAN 2 to buy another IP.

From your quote:

I was thinking along with what you said. I have cash funds that can paid off LOAN 2. If I paid off LOAN 2 and re-finance at the same time with the same lender and with the…[Read more]

Continuing with my new situation….

In summary from old post, I was refinancing to convert PPOR to IP. I ended up with:

1 x IP with:

LOAN 1 – Tax Deductible
LOAN 2 – Non-Tax Deductible because I used it to buy my PPOR

1 x PPOR with:

LOAN 3 – Non-Tax Deductible because it is used to buy my PPOR

Now, I’m looking to buy another IP. So the…[Read more]

You are right. My investment site/land value is below $250K.
My current PPR under my wife name was previously use as rental property from previous owner. I didn’t notify SRO when I bought it because I didn’t know I have to do it. Is it my job or conveyancer to notify SRO?
Now, I need to lodge Land Tax exemption request to SRO. I need to supply…[Read more]

Sure Harvest wrote:
Adam, have you considered an evergreen LOC. These are designed on an IO repayment with some lenders requiring no review for 30 years (hence evergreen).  Rates can be slightly higher and qualification for a LOC can be more difficult today thanks to NCCP, but it achieves your outcomes as a set and forget IO loan.

I have not,…[Read more]

Jamie M wrote:

s0805 wrote:

Jamie M wrote:

adam.p wrote:
Thanks Jamie. That's what I had in mind.
ANZ are a bit funny – they see changes such as reverting from P&I to IO as "credit critical" so ask for  a new application to be submitted. There's been moves to change this – and I've been told that these sort of adjustments can be made in…[Read more]

Thanks Jamie. That's what I had in mind.

I just wanted to know if this is ANZ thing, not the same for all lenders.

Thanks Terry.

Can anyone recommend me property valuer for S.E. Suburb in VIC?

I tried to get quotes from several valuers but the quote given to me about $660.00 mark. Is this about right? They only asked the suburb and estimated value.

Hi Jamie,

To clarify my question:

I have an IP but only on my Wife name.

The loan is on me and wife name. The loan is secured against this same IP and for the purpose to buy this IP.

It will be negative gearing IP. So, with this scenario, who is allow to claim tax deduction?

Thanks

Hi there,

Browsing this forum make me realized I've been missing steps when converting PPOR to IP. Apart from getting property revaluation, is there anything else that needs to be recorded prior changing to IP?

Thanks

In the future, if I take out new LOAN4 (secured against new PPOR), with the purpose of paying of LOAN2 (secured againts IP), does this LOAN 4 become tax-deductible?

I've spoken to ANZ.

They agree with LOAN1, LOAN2, LOAN3 as I mentioned before, IO with/without offset.
They can do multiple offset accounts but they only give 1 free. For every extra offset accounts I need to pay $10 / month.

They also allow me to switch which loan to be linked to which offset account in the future for free. So for now, I linked…[Read more]

Combining Tom's and Jamie's comment, I understand the following:

– I need to have 2 x offset accounts
– 1 x Offset Account for LOAN 2
– 1 x Offset Account for LOAN 3
– If I only have 1 Offset Account on LOAN 3, I'll have to ASAP paying off LOAN 2? In this case, it makes more sense to have offset account on LOAN 3 since it has more debt.

Then…[Read more]

Thanks Tom.

I'll talk to the loan manager to arrange the above. The last time we spoke, he seems to combine LOAN1 ($218K) and LOAN2($50K), but I haven't agree to anything yet.

PLC wrote:

*offset can be linked to either account or both, but should be linked to at least one.

Do you mean 1 Offset account can be linked to more than 2 loans?

If for example: new PPOR loan approved: $300K. This is separate from current PPOR -> IP refinance.

Assuming going for the same lender for:
– Refinancing PPOR -> IP
– New loan for new PPOR

Which of the following the same lender will give?

Scenario A:
LOAN 1: PPOR to IP, IO, No Offset, Amount: $268K ($218K + $50K)
LOAN 2: new PPOR, P&I, with…[Read more]

Thanks for the comment. I now understand. 

Basically there is no way to increase current loan and claim tax deductible on full new loan amount. The tax deductible part pretty much stuck with existing loan amount.

Also in the same situation, have been reading posts, discussions and still something missing for me.

Using the same figure but with the following existing structure:

1.) Current PPOR: P&I, 100% offset, no redraw facility

2.) Refinance PPOR. Using the same figure from rickgm83​, the extra $50K goes into 100% offset account.

3.) Convert P…[Read more]