Thankyou all. Appreciating the advice. I don’t have an offset account to put it in, as we don’t have a PPoR. We are living in a company house with virtually no rent/overheads. Might look to put it in a managed fund for a rainy day!

OK, so this may be my next dumb question but if I’m not using cash as deposit then what should I be doing with it?

Thanks for your replies, I was hoping for a bit more input from any other professionals out there pleeeeez?

Hi Terry

Thanks so much for your comments.   In response:

1.  I will definately call the credit card company – considering the amount of interest we've already paid to them over the past year or so I'd like to think they would take that into account and work with us to help pay it off.
2.  I have spoken with the ATO and we have set up a monthly…[Read more]

Yes cashflow is super tight so we realise now that the offset account is of no benefit at all.  We are much better getting a lower rate on a fixed 3 year term.   Paying off all those debts is critical so realistically we will be extremely cashflow poor for the next 2-3 years.   
Still smiling though!!!   Phew

Hi Shahin,
our credit card has been over the $22.5k limit for the past 4 months with hardly any amount being put on it..   Plus we had to hold our mortgage repayments for 3 months last year due to financial hardships.  Husband hasn't had a steady income for over 12 months due to operations, loss of business, etc. but has now secured a full-time…[Read more]

I agree Jamie, but at the moment we are struggling to get us thru to the next mortgage repayment.
In a few months time, I'm sure we'll be in a better position, but I've just got to get us through which is why I've been trying to do a deal with the bank then ask for a second opinion about our options on this forum.  This is all I can do at the…[Read more]

Hi jamie
its an IP so I definitely don't want to incorporate the bad debt into my loan.  Which is why it was suggested that I split the loan and keep the absolute minimal amount in the variable portion plus the cc debt. I just don't know what the best thing to do Is!  All I know is that I've got to move our cc debt into seething manageable and I…[Read more]

Hi Shahin,
Thanks for your comment.
My every intention is to pay off the bad debt first – problem is, I want to get rid of the 19.99% interest rate.  I cant do a balance transfer because we cant get approval for another credit card (given our current credit rating).  

Hi Jamie
We didnt pay LMI but only have an 85% lending value ration which could make it tough.  He suggested we apply for the possibility of a split loan with as much as possible going into the 3yr fixed rate account and only minimal in the variable account with the added $22.5 credit card debt going into that.  One thing I didn't ask was the…[Read more]

Yes Terry, I dont think we'll be moving back in.   Probably buy somewhere else and try to keep it if possible.

Nathan & Jamie,

Thankyou so much for your invaluable advice.  I couldn't get my head around this advice (and obviously for good reason).  Unfortunately it came from the Bank (Big 4) – scary isn't it !!!   Makes you wonder how many people are getting the wrong advice and actually going through with it.

This website is a Godsend for people like me…[Read more]

Hi all (again),

So, I'm a little confused again as I've been told that if we incorporate all 3 debts (2 x investment loans on the same property which is our PPoR plus a $22k credit card debt) into the one loan whilst the property is still our PPoR, then when it becomes a rental property we can claim the full amount of interest on this loan as it…[Read more]

Thanks for your replies everyone…

Unfortunately, because of hubby's brain surgery mid 2012 and subsequent loss of work thereafter, we would not be in a position to apply/refinance for another loan if they need to check our figures, etc.

Can I clarify that perhaps our best option is as Tom said::

"You will need to segregate your loans into…[Read more]

Hi Tom,

They are both on our one PPoR, but were set up as investment loans.  The first was our original mortgage, then the 2nd was to finish the renovations.  So yes, they are both for the one property which is currently our PPoR – soon to be our rental property.

Thankyou,

Hi Tom,

Thankyou for your reply.  Just wanted to clarify what you think I need to do.

I have 2 investment loans and one credit card debt of $22.5k.  The bank Advisor suggested I incorporate all 3 debts into the one loan which would be IO with offset account, and therefore much more manageable for us.

Are you suggesting I should only refinance…[Read more]

Thanks Shahin and Jamie for your replies.  I appreciate your time.

Nigel,
We did think about selling the property however our chances of getting another loan right now are not great.   We figure it is best to keep what we have in Sydney, get hubby in a stable working position, then in 6 months time we would look much more favourable to the…

Hi Gazza21

Thanks for your reply….  much appreciated…

I'm getting the idea its best to stay on Interest Only whilst we're away and renting it out.  You mentioned obtaining a Depreciation Report when we switch it over to an IP – who does these?   And what is the reason for having one?

Thanks again
Boshie