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Thanks heaps guys clears heaps of stuff up for me,
always much appreciated – this site is an absolute asset!
Hi Shane
thanks heaps that clears a fair bit up for me : )
FYI its CUA's basic 2 yr fixed rate, meaning no offset but my extra cash is in my PPOR offset anyway
i am also waiting to see what happens with rates in Dec before i lock anything in.
thanks for shedding some light on this for me, ill be crunching the numbers with the missus tonight
carl.Hi Richard and Sonya, thank you for your follow ups.
Richard the 50k is in an offset account for the PPOR so i think what i'll do for now is just pay my minimum repayments and keep this 50 and any other savings in the offset account, when it comes time to move on i will use the money in this account to buy my next PPOR and would have only paid little off the current house which will come investment #2. I will only make minimum payments on the first investment property as well. You would surprised at the pressure i get from family and friends to own everything outright that is why i come back here on this forum to have a balanced opinion.
I don't mind paying off some of the principle off my investments because i never see my self selling them. Some people i have spoken think it's silly to have investment property without owning your your PPOR but it seems that the general concensus here is that if you don't want to stay in your PPOR forever why give the bank your money when it can stay in an offset. Thanks Richard i will continue to save my own money and use that when the time comes.
Sonya i thought you might have said that the refinancing was troublesome. I am sure for some it hasn't been but i have heard a lot of times that it is lengthy and costly, i guess though if at the end of it you are much better off then it was all worth it.
Thanks again guys,
Merry Christmas,
Carl.HI Richard
Thanks for your response
sorry to make a generalisation about financial planners being pricey… i am sure there are many out there who are reasonable and worth absolutely every penny.So the situation is that we had to buy a house because i have no where to live… this was a necessity.
your response to me was:
1) I assume the current IP loan is a fixed rate product at 8.09% and also appears to be a P & I loan which is a definate NO.
This is all true, could you please elaborate on the "NO"
2) Whilst you only settled on the new PPOR loan on Friday is this loan also P & I ? If so given what you are trying to achieve in a few years time again another NO.
Yes it is P&i, please elaborate on the "NO"..
sorry but needed thank you kindly for you time,
Carl.
Hey Sonya
Thanks heaps for your response
i hope more people can contribute to this topic.
Yes, the offset is a 100% offset account.
Just wondering about refinancing – was that difficult – did it cost much?
Thanks heaps
CARL.I love Springvale.
Hi Thanks heaps for your input!!
I really appreciate the comments!
So i guess i have plan now,
i am going to always keep my money in an offset account which is linked to my PPOR mortgage
and if i move ill take that money with me.
You guys are all ace!Thanks Karen and Richard,
SO in a nutshell Karen you are saying put all our money into an offset account on the PPOR and use that in five years as a deposit to borrow and buy our dream property. In any case never owning the two IP. Are the tax benefits that good that if you, for example own two houses outright i could use the rent of those to pay off a third house, seems that no one digs this option.
Richard, thank you for your reply also – very much appreciated. Yes you could say we cross collateralised, in that we borrowed the entire amount of the PPOR from the same bank because we had already paid off 130K off our IP and it has also gone up about 20k. So i was wondering what you mean by it biting us down the track? Is there any thing else i could let you know so that you are able to add any other thoughts to my plan as you say "some structured advice" and what tweaking may be possible and why i would i do such? I know i am asking a lot but i am very very grateful for any feedback you can provide. Thanks heaps, little bit over my head but i need to know this stuff, again Thank you kindly.
Cheers,
Carl.
