Can anyone tell me the easiest method to work out depreciation on a property built after 1987? I am trying to find positive cashflow properties however I want to know if there is a way to estimate what the depreciation would be in year 1 etc prior to getting a Q.S? Am I best to look at newly built houses (house and land packages) or just established houses built after 1987 – Is there a big difference in the depreciation I could claim?

Cheers

Jac

Hey Banker – You picked it, I am talking about CBA home loans. To be honest I work for CBA, but dont hold that against me! haha

Thanks for your advice around servicing IO loans. What Bank do you work for? I presume your in a lending role also?

Hi Terryw,

Yeah I think it makes more sense just to use a LOC on my personal home loan debt and a IO Loan for IP debt. Do you normally just recommend your clients to stay on standard variable over fixing?

I think servicing would be better on a standard IO home loan as it is taken over a 30 yr term not 25. I just like the flexibility of the LOC as there is no deferred establishment fee if loan is repaid within 4 years – if I was to sell or refinance. There is normally only a  0.10% difference in interest rates between the two products. If I was to stay on standard variable interest only would I still be able to reduce the principle during the IO term if I wanted to increase my equity once my personal debt was cleared?

A question to the finance/mortgage brokers out there – how do you normally structure your clients IP loans?

Do you do an 80% Standalone Interest Only loan or LOC secured by the IP and 20% deposit in a LOC secured by the clients Owner Occupied property?

I like the flexibility of the Line of Credit however just wanted to know the best way to structure my loans before i borrow again. There seems to be quite alot of negativity around CC and it just wanted to get the structure in place before i purchase again.

Thanks in advance

Jacqui