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Hi trevmanox, do you know how much do they normally charge? also slightly off topic, has anyone here tried BANTACS?
crj,
I'm afraid option (a) is not possible since we have both of our names for our IP and PPOR. I haven't organised a QtySurveyor as the IP was built in the 1950's.
And with option (b), I prefer not to sell our IP until 2012 as we have fixed 50% of the loan, because I'm aware that the exit fees to a fixed interest loan is normally pretty big.
We've been reading about Line of Credit (LOC) and thought this may be an option for us.
At the moment, we are leaning towards getting a LOC set-up against the IP, and use it to pay the interest and all IP related expenses and use the rent as an additional PPOR loan repayments, but not sure if this is the right move.crj & KY, thanks so much for your input, it's definitely food for thought!
We forgot to mention the time frame of each purchase,
Year 2007
Initially we puchased our IP with FHOG in May 2007, with basic understanding in property investing and no long term plan. We secured a property in 15km west of melbourne and borrowed 80% against the selling price of $230K.
Year 2009
As we had accumulated some savings, we were contemplating if we shoud get another IP or a PPOR where we can grow the family. We saw the housing market crashing in late 2008 and took the opportunity to secure our PPOR for 800K in early 2009. Positively, if we didn't jump in and bought it, there is no chance that we can afford it now.This is how we've come to get the IP loan to be less than the PPOR loan.
We will reseach more into debt recycling.Unfortunately, due to the circumstances at the moment (family member living with us), we are not in the position to make the PPOR as a rental.
We still think paying $2500 in non-deductible interest is too much though and is looking into other avenues to possibly harness some tax reduction out of this situation.
crj, could you provide more information on what you wrote "I don't think they will have much trouble working their PAYG down when one of them stops working to have a baby".
Again, thanks so much for all your help.
