Hi there

I’m not a fan of the one stop shops who claim to offer everything in house.

I’d be searching for a decent broker to arrange the finances, a decent accountant and if required, an independent buyers agent to locate the property. All of these professionals can work together on your behalf – all are independent of one another which eliminates any conflicts of interest that may present in a one stop shop.

A handy legal person is always good to have on board too. Wouldn’t want to upset our resident legal eagle

Cheers

Jamie

Hi there

James from House of Wealth http://houseofwealth.com.au/

Cheers

Jamie

Hi Craig

When you “redraw” money – the purpose of what the funds will be used for will determine whether the redrawn amount is deductable.

For instance, if you paid a large chunk off your loan and then redrew this amount to purchase a house to live in, the redrawn amount wouldn’t be deductable because the purpose isn’t investment related (it’s an owner occupied home). In this instance, you also risk contaminating the entire loan – meaning none will be deductable.

If you had paid all of this cash into an offset and took it out at a later date, you wouldn’t be confronted with the same issue.

Long story short, interest only with an offset is ideal.

I posted this link the other day, it’s an article I wrote for Aus Property Investor magazine on this topic, hopefuly it helps http://passgo.com.au/blog/25-mortgage-broker-canberra-blog/75-interest-only-with-offset-account-structure.html

Cheers

Jamie

Hi Craig

Welcome aboard.

Do you have any non-deductable debt such as personal loans, credit cards, store cards, ect?

If so, it’s best to knock this debt on the head first.

Generally speaking, it’s ideal to have tax deductible IP debt set up as interest only. You only need to have one offset set up against either of the loans – park your spare cash in this.

Cheers

Jamie

Sounds like if you refinance within the next two years or don't go ahead with the loan after formal approval is granted than you'll have to pay the brokers comission. I don't think it's unreasonable.

Most people don't realise that brokers have their comissions clawed back when the loan facility is closed down within a certain period (generally up to 2 years).

Ask them if they'll waive the fee if you do need to refinance within the next two years but use their company to do so (that way, the new upfront comission will make up for the claw-back but they'll be doing the twice the work).

Cheers

Jamie

Agree with Richard. 90% of my clients are interstate.

Internet and phone is all you need – with those two things, you can use any broker in the country.

I’m actually sitting in a hotel room in Kuala Lumpur right now finishing off an application for a forum client who’s in Perth!

Shoot Richard an email – he’ll help you out.

Cheers

Jamie

Hi Beebob

Will the next purchase be an IP?

If so, by placing the cash from the offset back into the loan and reborrowing it for the IP, you’ve made the entire debt tax deductible. If you used cash for the deposit/costs, it wouldn’t be deductible.

You’ll need to check with your current lender that you’ll be able to access those funds once they’ve been placed on the loan.

Cheers

Jamie

You guys didn’t provide your credit card details??

Seemed like a perfectly normal request

What the hell is an ex president courier mistress anyway?

Cheers

Jamie

Hi Maggie

Just saw this thread on another forum – http://somersoft.com/forums/showthread.php?t=77601

Cheers

Jamie

The loan docs will tell you which securities are being used for the loan.

Cheers

Jamie