Terryw wrote:
Do you have a separate loan for the equity release? If not you should

Terry Just another question on this one…..I recently requested equity increase of $45200 from my PPOR lender. I have setted up separate loan of $32,000 to be used as 10% deposit for my IP purchase and mixed the remaining $13,200 into my existing PPOR loan…[Read more]

Trev wrote:
Hi amsaini, the two properties are negatively geared.  The rental pays off part of the interest payments and the remaining interest debt accumulates. 

I wasn't sure if you can let remaining interest debt to accumulate while directing all payments into PPOR loan as ATO will see this as a scheme where we are paying off non-tax d…[Read more]

I think you still have to pay interest on an IO loan. Trev, how could the size of your IO loan increase if you still pay your interest .Terryw, Is it possible to setup loan in such a way to let Interest capitalize and direct all income and rent into PPOR loan. I asked my accountant and he advised this would not be possible in Australia (Possible…[Read more]

Thanks Paul.. Very good explaination. I have to now think about it if I want to keep it different from 50-50.

Thanks Sandra !! Much appreciated.

Thanks Greg for the detailed explaination. I am going with the IO loan with the offset. Thanks for the confirmation that this arrangement is  fully funding the IP purchase.

SandraL wrote:
Amsaini,I think you should be able to set up an LOC with your existing lender (MyRate) to access the equity on your PPOR. This then becomes the deposit for your IP. You can then take out a new loan for your IP with CBA or whoever you like. The interest on the LOC will be tax-deductible, since its purpose is the IP. So a pretty…[Read more]

Thanks everybody for the solution. Now the tough decision that I have to make is whether I can trust Myrate to process breakup faster so that I can have both loan with CBA or if I have to stay with MyRate at 7.1% LOC loan.CBA lender was telling me some lenders take long time (5-6 weeks to process the transfer of loan) which would put me in trouble…[Read more]

Thanks duckster and DD.@duckster – I have now subscribed to the Australian Property Investor Magazine for 12 months. As you said, I think this will help me get more understanding of the current situation.@DD – Thanks for the detailed info. I can see you have a good understanding of this area.I am keeping an eye on the market but it seems house…[Read more]

Thanks Richard, I will email you as soon as I have property of interest. CheersAman

Forgot to add my email address – amsaini15@gmail.comThanksAman

Hi Richard         Thanks for your help. I do not have exact address of the property but I am looking to buy in Glendenning (2761) and Plumpton (2761) in NSW. I am interested in suburb profile and/or recent sale data of these ones. This would be my first IP so any information about vacancy rate and possible rent information would be great.Thanks a lot

Thanks Guys !! Much appreciated. You all are Legend.

Not sure why you paid large deposit for investment property. you should have saved your deposit and let the property be negatively geared. I am new to all this but this is what I learned so far. To have 100% loan to make it negatively geared for claiming. What do you say guys?