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thanks so much luke and paul for your responses.
yes i guess i need to establish that first. the property is currently managed through a property manager – is it wrong / rude to bypass him and deal with the owners direcly though ?? their contact details are not on any of the lease forms i have. would the local council be able to provide these details to me?So paul, can you please explain abit more about how it works ??
is a deposit paid to them ?? as vendor financiers do you act as the 'bank' and are regular 'inflated' weekly payments are made to you, in return for providing funds to vendor ? if we dont settle for 3 years, are we allowed to renovate / modify the house in that time before it settles, ?? The house is screaming out for some repair / renos, so my thinking is to be able to improve / add value in that time, then refinance.i really should have checked out your website before i started writing this, (sorry) il go have a squiz now. this is totally outside the square of anything ive ever considered, so i do apologize if it seems like i have no idea.
thanks again
x nataliethanks so much for the clarification guys!!! much appreciated!!
so is it just the portion i use that wont be tax deductible or the whole loan ???
i dont expect to claim the interest on the part i use for personal use, i just want to be able to access funds without having to have to sell my original PPOR .
is that were the split loan thing comes in handy ? so it keeps the loans separate so i (and my accountant) can easily see what is tax deductible and what is not ??sorry this is still all new to me. thanks
hi dan thanks for the reply. so even if the money has been sitting there in offset for a considerable period of time (months) i still cant use it for private use ?? The original purpose of the refinance was to get access to our equity in case we ever needed emergency money or for if we were to buy another investment property. is there any other way around being able to access funds for a deposit on a new PPOR ??
thanks JT7 – i forgot to mention the 6 year thing!!
hi wattoette,
i read that same article, and i think it WAS about her now choosing to rent where she lives as apposed to having a massive mortgage herself. that way, she has a larger amount of money available to fund other investment properties. – a common strategy used by some if they are happy renting themselves.for your other question – do you mean renting out part of your PPOR while you are still living in it yourself ?? or renting out the entire house to another party?? My understanding is that if you are still living there yourself and renting out a room then only a percentage of the interest on the loan is tax deductible. and i believe this scenario can get really messy come tax time ?? may be wrong, but we have done the second scenario ourselves – we rent out our entire PPOR while we choose to rent in another suburb. – The entire amount of interest charged is tax deductible, AND our PPOR remains CGT exempt while we continue to rent!! best of both worlds!!!
happy investing! hope that helpsthanks so much dan42!!!
just the answer i was after. much appreciated!!!!wow! glad im in vic!!!! good job on the negotiations then!!! good luck
12% agents fee !!!!!!! wow what state are you in ?? that seems really steep to me. ours charges 6% (melbourne SE suburbs) I would be trying to negotiage a better deal!! otherwise goodluck with everything and well done for taking the first step with your first IP!!!
thanks so much guys. currently with st.george. Annual package fee of $395 with offset and credit card facility included
so let me get this straight – (sorry im still new to this!)
if loan is i/o my repayments would stay the same ($1840/month) but the amount of interest charged monthly would slowly decrease over time and with the more i had in my offset account. yeah? so although not paying the loan 'off' , my equity in the place would still increase provided market value went up? yeah??graeme – thanks for your reply. does it still make sense NOT to pay off the principle if we plan to sell in 6 years time and not have to pay CGT?? wouldnt we make a bigger profit in 6 years time if the total amount we owed on it then was less?? or are we better off servicing another property with our extra cash flow?? thanks
thanks v8ghia,
loan does already have an offset account but accountant thinks i should drop it ( they say that in reducing the amount of interest we get charged monthly it reduces our tax deductible expenses) i read that as we would expect a bigger tax return if we dropped the offset, but not sure i agree with this move. we are not in it for the once a year return – we are thinking and planning for long term finanlcial freedom.
We have been very happy with our accountant in the past,( who is also a mortgage broker and finance consultant) just not sure if we share the same opinion on this one though.
