Hi pwellsau,

Just to let you know, I had an initial chat with Canterbury back in '06, but never took it any further.

I went it on my own, without having some of the doubts hanging over my head.
After some research, I discovered a number of people were doing something similar (in my mind). Set up a LOC to pay all Invesment property expenses and repayments, and this LOC becomes tax-deductible (eliminating all the issues in my previous post with Capitalising Interest). Then use the Income to pay down PPOR (or at least put it in an offset).

Removes the issues I (and other forum members) had with them recommending properties and Covered Calls, etc.

That said, I would also love to hear if anyone has used them and what their experiences have been like.

Regards,
Matt

Thanks again Simon.

I am awaiting some further info from zerotax, so I will hopefully find out more. Might arrange to speak with someone on the phone tomorrow and find out some more.

I’ve got the lending covered – I would most likely need to use their service to obtain a loan – but I know what to look for – I work in Home Lending, so I know a decent deal and what sort of fees are par for the course.

As for vals – know some of the valuers we use at the bank, so I would likely arrange for them to value and provide a true indication….

One ofhe main things I need to calculae is what sort of tax benefit is involved – unless property is +CF (which i doubt), then it is merely transferring interest from one loan to another, to obtain a tax benefit. If this benefit is substantial, may be the way to go. If not – no real purpose then. Until equity is gained to buy shares and another income source, then the tax benefit is the only ‘visible reward’ in my eyes…..

Please advise if I may be heading off on the wrong tangent…..

Great – Thanks for that Simon.

So, Interest on Interest – so Ideally, you make absolutely no payments to the Investment loan, not even the Monthly Interest charge – I have never heard of this, outside of a Line of Credit with heaps of room until the max limit is reached.

And they arrange the loans in-house, similar to a broker? So it isn;t a case of ‘OK, we think this is an ideal place to buy – now go and find the finance yourself…’??

I know I should just give them a call, but I am a little apprehensive (as you can tell!!), that once I contact them, they will try and hold on to me.
Although – if they charge no fees, then I guess there is very little to lose….

What exactly is capitalising the Interest, and is it something that is allowed??

And if it is not capitalising interest, but just extremely aggresive investment plan, how great would the risks be? They really try and play down the risks by stating they target high occupancy areas.

As for fees, the details I got in the email they send out (or the company who sent it to me on their behalf) –
No Outlay by you EVER.

So I assume they take something once you make some money from the plan….

Thanks for you help