The trick is to only limit credit hits by getting it right first time around.

You’ll need to put this next deal up with a Genworth backed lender with a DUA and preferably no (or not brutally harsh) credit scoring. At 95% it’s going to be hard – at 90% you’d have a lot more options.

Cheers

Jamie

Technically it can help a little bit – but not too big a deal that it should encourage someone to fix their loans. As Richard said – there are other avenues to explore.

Cheers

Jamie

If you’re in a certain profession or an employee of a lender perhaps.

Cheers

Jamie

If they’re good tenants then I’d keep them happy. Having said that – since you’re going to knock the place down soon I’d offer to sort them out with a portable heater….which don’t cost much.

Cheers

Jamie

yuley7575 wrote:

So I might be bit ahead of myself thinking I would be able to borrow a lot more. He also stated that it is fraud to have a LOC used that as a deposit on a house and get borrow the new funding from a different bank.

That’s rubbish.

You’ve disclosed what the funds are being used for.

The banker just wants ALL your business.

Cheers

Jamie

Here’s a little tool I created a while back – I haven’t checked it in a while but should still be helpful today http://passgo.com.au/investment-property-analysis-tool.html

Cheers

Jamie

matt_decat wrote:

gday

I have a rental property at the moment which is positively geared and still have around 250k owing on the property and is a P&I loan. I am currently looking for a PPOR to live in and wondering if its possible to ‘transfer’ equity.

I would covert current IP loan to IO now – no point in paying down this debt further if you’re going to be taking on a non-deductible PPOR debt shortly.

matt_decat wrote:

As the property is worth around 400k, is it possible to refinance the house for 350k (100k more than what I currently own) and make the loan an IO loan. This will then make the property close to neutrally geared, therefore reducing tax and my monthly repayments. with the extra 100k, if i then put that onto my loan for my PPOR to reduce the required repayments and my non tax deductible debt.

You should be able to increase the loan to $350k – but only $250k will be deductible (the current loan) and the other $100k won’t be (it’s being used to buy a PPOR).

Cheers

Jamie

As above. Keep it nice and simple.

Cheers

Jamie

Too ambitious or realistic? It will come down to your borrowing capacity but the equity is certainly there – so if leveraged property you could purchase multiple IPs.

Don’t use cash – leverage against your PPOR. Take out a variable IO loan rather than a LOC. Use this to cover the deposit/costs on each IP purchase and set up a separate loan for the remaining balance against each IP.

By “borrowing” to fund the deposit/costs you’re keeping 100% of the IP debt plus costs tax deductible.

Talk to a PM after you have an offer accepted on a property.

Cheers

Jamie

tom123 wrote:

Interesting, How will you know if the bank will go of a desk top valuation or send a valuer? when you enquire they will tell you then i guess?

Hi Tom

Most decent brokers will know which banks will take into account a desktop for an equity release.

Cheers

Jamie