Hi Sam

You can access equity in your current property to purchase your next.

You can also turn your current unencumbered property into an investment property.

However, you can't claim any interest against the unencumbered property.

Why? Because deductibility is determined by purpose – the purpose of the equity release is to fund a new PPOR, which isn't a deductible purpose.

People fall into this trap all the time – with some careful structuring from the start, it can be avoided. 

I wrote this article for Australian Property Investor on this topic. Hopefully it helps.

p.s – depending on your state, a spousal transfer may be possible.

Cheers

Jamie

Not sure if this helps but it's something that popped up last month http://www.propertyobserver.com.au/queensland/gladstone-property-market-cooling-with-some-20-price-corrections-htw/2013010858637

Cheers

Jamie

I'm with you Ricksta – I don't know how they come up with some of these figures.

Cheers

Jamie

I'm not a huge fan of off the plan.

The single biggest issue in my mind is valuations not stacking up upon settlement – which can be a huge mess, particularly if the buyer has a small deposit.

For investors, there can also be an opportunity cost because needing to settle on an off the plan property in the future may mean that they are unable to take advantage of other investment opportunities in the present (because it may effect their ability to finance the off the plan property at settlement).

Cheers

Jamie

Hello and welcome aboard.

What do you mean by a bargain? Perhaps that's the reason why you haven't purchase anything yet – maybe you're expectations are set too high in terms of purchasing something for a lot less than what it's worth.

I agree with Terry – no point in rushing in just for the sake of buying something. There's a lot of money at stake – and it's a decision you'll live with for a long time.

Cheers

Jamie

Hi Lisa

My brother in law is a cabinet maker in Canberra – his market is flat pack DIY kitchens. I think they ship interstate. Feel free to PM me for his details and I'll dig them out.

Cheers

Jamie

Hi Hannah

Unfortunately it's not who your appoint – but rather who the bank appoints.

Ask your previous broker for the report – or at the very least, the company that carried out the last valuation. I can't see why your broker wouldn't provide the report if they have a copy of it.

Cheers

Jamie

No worries. The tenants lease will still need to be recognised by the new owners. If you're worried about losing good tenants, maybe ask the PM to let them what you're trying to do (ie. sell for a certain amount and if it doesn't – then you'll continue to rent it).

Cheers

Jamie

Looks like we're communicating across a couple of forums

It's a tough one. Personally – if it were me, I'd reval and access equity rather than sell.

The timing for selling isn't right – and probably won't be for a few more years.

You've got decent tenants, it's not costing you anything to hold onto and it's relatively new so maintenance shouldn't be an issue.

The alternative is to place it on the market and see how it goes – if it doesn't sell for what you're expecting, then go down the reval and equity release path.

Cheers

Jamie

I won't comment on the area or dwelling type but I strongly suggest that you set the loan up as interest only with an offset from the start if this is going to become an investment property in the future.

This article explains the concept.

Cheers

Jamie