Forum Replies Created
Hi Wade
No real point in having an offset set-up against an IP when you have a PPOR.
A simple IO loan should do the trick.
Keep the offset against your PPOR.
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]
Excellent, you're in good hands.
All the best with the move.
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]
For anyone reading this and considering the ANZ 5.8% fixed rate – just letting you know that the offer expires at the end of this month so get your applications in before this date if you've decided this is the way to go.
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]
Exactly, if that new house is a PPOR than that portion of the loan won’t be deductible. If the next house is an IP then it will be.
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 Tony
That's right – can only claim if all parties haven't recieved it previously.
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]
mi65ni wrote:I can see myself in a similar situation, but with time on my hand. I have not bought my new PPOR yet.
I have heard that i can re-finance my current PPOR loan now to a higher LVR and then when it becomes an IP the larger interest amount will be claimable. Is this correct?Cheers
NathanHi Nathan
No – it doesn’t work like that.
Deductibility is determined by purpose. If you increase your loan now, what will those funds be used for?
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]
eilatan28 wrote:I don't think the borrowed funds would be tax deductible though ??? Isnt the new purchase going to be your PPOR ??Correct – I thought Karen was buying a new IP but your right, it’s a new PPOR.
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 Karen
Congrats on the next purchase.
It looks like tapping into the equity in your PPOR is the only way you’re going to get this done as the $17k isn’t enough to cover the deposit and costs.
Best to set up a second loan with CUA so you can distinguish this IP debt from your PPOR debt.
At least the borrowed funds will be tax deductible whereas your cash isn’t. I’d try to hold onto that cash and stash it in an offset against your PPOR for a rainy day.
Hope that helps.
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 papaung
Welcome to the forum.
When you originally accessed equity, did you set up a second loan or did you simply extend the original loan to a higher limit?
If you set up a second loan as the deposit for your new PPOR, that loan won't be deductible but the original loan will be.
Basically, you should be able to claim whatever the loan amount was before you accessed equity.
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 Roadhog
Welcome to the forum.
The first question I would ask is “do you own any investment properties”?
Ideally, you want to surround yourself with professionals that walk the talk.
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 Wade
CGT will apply to the duration it's an IP. Therefore, it's best to get a valuation carried on the property once it becomes an IP so you have a reference point down the track when it comes to working out how much CGT is payable.
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]
tiger_ra wrote:Then after the auction last saturday (unit was passed in), the agent told be she "just died" now, "she wanted to see the auction through" and advised me it was a good time to make an offer as they were "at a moment of weekness"……What a scumbag REA. He should be working in the vendors best interest, not trying to take advantage of the terrible situation. It's REAs like this that give the industry a bad name.
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]
A 90 day settlement isn't usually going to present any dramas from the banks perspective.
I'd be more focused on the early access part of things. You should seek advice from your legal person in regards to getting something written into the contract.
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 point having/paying for those offset accounts against the IPs when there’s a PPOR in the mix.
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]
Generally speaking, you times the credit card limit by 5 and that’s the amount of borrowing you’re foregoing. This is a VERY general rule.
When working out the monthly costs of a credit card, most banks times the limit by 3% so a $5k limit will equate to $150 per month in your liabilities.
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]
Yep, I received the same spam PM as ceekay above.
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]
goldies wrote:Hi Jamie, I have my fingers crossed that I am onto a real winner later on down the trackFirst and foremost the cash flow is brilliant 14.8% after spending approx $12k on renovations for each house. ( we do it ourselves so don't pay labour costs) and its in a town experiencing good growth with rental yields having recently gone through the roof also. This is my new favourite town! Plus when done, should have made 80% equity gain, simply from a lazy vendor who didnt want to touch the 1950's decor and cracks in walls and didnt want to hold onto it and wait for a high offer, skyrocketing rents and my countless hours of research then hard ball negotiating.
I love property!
Yep, sounds pretty sweet! Well done and congrats!
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]
The pricing discount on offer will also depend on your overall LVR and the current structure of your existing loans.
The banks aren't as competitive as they were even a month ago.
As has been mentioned a heap of times in the past – it's not always about rate. There's so much more to consider.
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 Goldies
The major pro is probably the cashflow – I'd imagine the yield would be quite good if the purchase price is comparable to one property.
If you could sub-divide later on, then it's an extremely good find!
The major con is what you've alluded to – there will be a limited scope of interested buyers 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 Marcus
Congrats on your first IP.
Personally, I'd look to use a broker independent of the selling agent.
ME aren't the most competitive lender out there – from memory, their offset product is a tad on the expensive side.
There's a few decent brokers on this forum that could help.
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]
