Or better still put all of it into a 100% offset account against your loan and just pay the mortgage out of this offset account. You can stay home with your baby for as long as you like. All the profit from your IP sale will be being used to reduce the interest on your house loan.You retain the flexibility to use this profit later to buy another…[Read more]

Hello BreammasterI'm not sure why none of the MB's on the site, who are usually really helpful, have answered you so I'm going to have a bash. Please remember that I am not a MB. Actually I think you can probably do it both ways though they are not equally good in my opinion.1. Take out a loan for $300K with the security being both your home and…[Read more]

sienna1 wrote:
at the end of the day after rent comes in and after tax reduction etc we will be required to pay roughly an extra $60 to $100 per week which we will take from the investment loan for $65k which will then be about $25k and if all goes right after about 4 years rent should have increase to take over the payments and also we should…[Read more]

Hello pasandbecIf you do decide to sell then put the profits into an offset account coupled to your PPOR loan, not into the loan itself. If you then use the money in the offset account to buy a new PPOR and turn the current PPOR into an IP then all the interest on the loan will be tax deductible. If you pay down the loan and then redraw to…[Read more]

Hello robsterI found it strange that no one responded so I thought I would. Just in case you didn't go to look at the site recommended by scullyman in the thread "Any good spread sheets out there?", I thought I'd post it for you again in your thread.http://www.sourcewealth.com/index.php?option=com_content&task=view&id=31&Itemid=46As scully said, y…[Read more]

Congratulations Linda. Which was your story?So which story won. I just checked Amandas site but couldn't find any results posted.Elka

Hello JohnOn reading the original post by websearch1161 it seems that he used his PPOR as security for the loan. He did own this house outright but now has an 80% LVR loan on it which was used to finance the IP within his super fund. Can you explain a little more about transition to retirement pensions please. What can you take out, for how long a…[Read more]

Hello  forgetfulI don't know which example you are using.  I have 2 of Steves' 3 books but not the last one yet so without actually knowing the details of this example I will try to explain. Knowing that Steve mostly buys cash flow positive investments he did not have to pay out the $1000 per month that you used as extra savings into that my…[Read more]

Hello CrystalGood luck. I would love to know the outcome so please post it.Elka

Hello RichLeeIf you have a trust it makes sense to set up an account in the name of the trustee. I have a company as the trustee so that's the name on the account. The type of account is up to you. If you have an offset account linked to your mortgage then this seems like a good place to have the rent deposited into otherwise the best interest you…[Read more]

Hello GenThank you. Will do.CheersElka

Hello LindaThank you for your offer but my time frame does not allow for the time it would take to get it this way.regards  Elka

Hello Cresta76This is a small addition to my previous post.If you decide to increase the mortgage on your old PPOR to clear the personal loan then make sure you do it as a split loan to keep the personal debt separate from your IP debt. At the same time organise a 100% offset account linked to the personal debt part of the loan and put all your…[Read more]

Great improvements. Love the new features and the look of the site. Love the spell check. One suggestion. I wonder whether it is possible to limit the use of an avatar to one member only . I have no idea how difficult or possible it is technically but maybe you could remove it from the list offered as soon as someone uses it. I seem to be seeing 3…[Read more]

Hello KenSeems to me that  buying the next property as your PPOR is the smart way to go exactly for the reasons you've mentioned.  Sounds like a good strategy to me while it lasts.The only thing to watch is I don't how many of these "buy PPOR, reno and sell" houses the ATO will allow you to do before they decide that your running a business d…[Read more]

Hello CrystalOf cause it's possible to sell a house while your overseas, as you've now posted yourself. I've sold 2 that way myself with my sister signing for me using a power of attorney. I don't think that is actually your problem.I don't think the vendor is interested to sell the house yet otherwise they would have left a key, at least, to…[Read more]

Hello Cresta76I am not a mortgage broker nor an expert on interest rates but I just had a quick look at the ANZ site to see what the rates are for a personal loan and an equity loan.The personal variable loan was 13.17% while an equity loan was 8.57%. Seeing as you have so much equity in your old PPOR wouldn't it be possible to get an equity loan…[Read more]

Hello ReginaHave you asked your agent what she thinks the problem is? Is it possible that there is not much demand in the area for such a large house? I don't know the market there at all but if it's the one I think it may be on realestate.com it looks like it would be quite easy to make ino 2 rentals. A 3 bedroom and a 1 bedroom.  Just a thought…[Read more]

Hello TerryYou may have read it on the ATO site. Here is the link to the appropriate sectionhttp://www.ato.gov.au/individuals/content.asp?doc=/content/36888.htmbut unfortunately they specifically exclude the scenario above"If you could not move in because the dwelling was being rented to someone, you are not considered to have moved in as soon as…[Read more]

Just to clarify that a bit. What Simon was saying was yes, as long as your friend doesn't get another PPOR in the up to six year period. You can't declare 2 PPOR's at the same time. If he keeps renting, then no problem. If his other property is an IP then this does not effect the situation.I believe that if he buys himself another PPOR ,lets say a…[Read more]