Forum Replies Created
oh – if you do decide to try AMP, order the val upfront so you know if it's possible.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
If it's credit scoring that's knocked it back then it probably hasn't ended up with LMI.
You could try Suncorp who don't credit score.
AMP don't credit score and it shouldn't go to genworth if it's a normal security/postcode and LVR doesn't go above 90% – including any capped LMI.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi and welcome aboard.
Personally, I'd stay away from serviced apartments. There's quite a few posts on the forum that discuss the pros/cons.
I haven't been up to speed with the particular markets mentioned but they have been on the radar for a while now – particularly Orange.
It's good to read that you're searching for growth – sometimes people on the forum get hung up on finding nothing but CF+ at the cost of very little or no growth.
$300k is a good start – spend it wisely and structure everything correctly.
Who worked out your borrowing capacity?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
No worries at all.
Is your current property a PPOR or IP?
If an IP – do you own a PPOR? or do you intend to own one at some point?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Firewater
Nope – not advising that you pay down any sort of percentage.
That was just an illustration of how equity can be accessed.
What is your current loan amount?
What is the current value of your property?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Terryw wrote:RPI wrote:One old boy I know, who has 10's of millions of commercial property, probably more.His advice was to always pay down one. Your own house first, then your oldest IP and so on. This guy has been buying investment property for over 50 years. The problem is the tight old bugger won't spend any of his money. He'll be dead in 10 years.
I know an old multi millionaire like that. He repairs his own underwear.
lol – well they say frugality is a characterstic of the rich.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Firewater
Generally speaking, a lot of lenders will allow you to access equity up to 90% of your properties value.
So if you had a property worth $100k.
On that property, you had a loan of $60k.
Then the bank agrees to let you take your loan up to 90% of the properties value – which is $90k.
You have released $30k in equity ($90k minus $60k).
Taking it to 90% of the properties value will incur some mortgage insurance – keeping at 80% or lower won't.
When carrying out an equity release against a PPOR, you need to set it up as a separate, stand alone loan so you can distinguish your tax deductible (equity release) from non tax deductible (PPOR debt).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
DOUGADCOCK wrote:id love to read this article mate, where can i find itHi Doug
Heres the link.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
BigCubez wrote:If you have a PPOR mortgage or any other personal debt, you would want to have an interest only loan on your investment property so that you can pay down your non tax deductible debt first. Jamie M has written an article on the subject that you might want to read. I spent weeks trying to explain to my girlfriend why an IO loan would be better, only to have her stare at me with a blank look on her face. I emailed her Jamie's article and now she fully understands why you would want to set it up this way.Hi bigcubez
That's awesome feedback. I'm glad the article helped to get the message across – I always write the blog pieces with the assumption that the reader is starting from scratch so I'm really glad to hear it helped with your partner.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
We carpeted our last 3 bedroom IP for $2.7k using bunnings carpet and installation. Can't remember the type of carpet but it looks nice and modern and is durable.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Doug
Where are you looking to purchase? You might be able to get some recommendations for BAs on the forum.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
cs_rlewis wrote:Yes this is an investment purchase. I have no other debt other than my other investment property. No credit cards, no car loans, nothing. Im currently renting.OK – so what's the rationale behind P&I on an IP? Not saying it's a bad thing – but is there a particular reason as to why it's being set up this way? IO with an offset against either IP may be a better alternative providing your ok with money.
Do you think you'll ever purchase a PPOR at some point?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
cs_rlewis wrote:Yes my broker thinks the loan should go through. He said paying principal and interest initially until the loan goes down, and then later i can fix the rate.Is this an IP purchase? Do you have other non tax deductible debt? If not, do you plan on having non deductible debt like a PPOR loan in the future?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi there
I'm not sure if it's possible or not – a call to the council on Monday will be your best bet.
What's the purpose behind the request? If you just want to know the quarterly costs – ask the REA if the vendors would be happy disclosing.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I'm with the other guys – it would make sense that it's deductible. At least a portion of it anyway.
Like Terry said – if in doubt, consult an accountant first.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
90% with a small telco default shouldn't be a prob.
Get Richard onto it for you – he will sort it out.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi and welcome aboard.
There's been quite a few threads on this.
https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4323940
https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4337391
https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4328614
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi guys
Not enough information to provide a sensible reply.
Everyone's situation is different – and there's heaps to consider when determining whether ownership should be under a structure other the your own person name. There's also different entity types to consider.
So many people want to purchase within complex structures but have no idea why they are doing so – it's just something that they've read in a book.
A chat with a decent accountant is in order – someone that's going to provide impartial advice on your individual circumstances.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Richards up in Brisbane – QLD007 on this forum.
Richard Taylor – Director
Taylored Financial Solutions
PO Box 5217, Kenmore, Q, 4069
P: 07 3720 1888 F: 07 3720 2830
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Like Terry said, doing it that way is going to increase your non-tax deductible debt whilst reducing your tax deductible debt. Not a good outcome.
Think of it this way.
You have a $100k owner occupied loan.
You have $30k sitting in the offset account.
So you're paying interest on $70k.
If you took that cash out to fund an IP, you'll start paying interest on $100k.
However, if you restructured the loans and created a $70k loan split (owner occupied debt) and a $30k loan split (the equity release for IP purposes) you'd have a $70k non-deductible debt and a $30k deductible debt.
A better outcome.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
