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  • Profile photo of Jamie MooreJamie Moore
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    Hi there

    Any reason why you have to sell? Looks like you've got some equity available in the first property that you could possibly access to fund the deposit/costs on another property.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Tiles are so much sturdier in an IP.

    We just put down some bamboo flooring in our PPOR and I cringe every time I see our 9 month old drag one of her big plastic toys across it :-(

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    dezability wrote:

    Now what I don't understand is (and it only occured to me just now), how come we are going through a lender when we have usable equity to borrow against in our PPOR? Isn't it just a case of going up to our current bank and getting them to write a cheque type thing?

    Hi and welcome aboard :-)

    There's a couple of ways to do this.

    Most bankers and a lot of brokers will simply cross collaterise your home with your investment. They do this by taking your home and using it as security for your investment property. This isn't ideal – it gives the bank too much control of your assets. It's great from the banks perspective but not yours.

    The best approach is to avoid cross collaterisation and avoid using your home as security for your investment.

    To do this, you'll need to have three loans set up. The first is your current home loan, the second is an equity release against your home (which covers the deposit/costs on your IP) and the third is the investment loan.

    So for illustrative purposes, let's assume you're buying a $100k IP. The loans would be set up something like this:

    PPOR

    Loan 1: Your current home loan

    Loan 2: $25k equity release to cover a 20% deposit and costs (such as stamp duty, etc) on your $100k IP 

    IP

    Loan 3: $80k loan to cover the remaining 80% balance of your IP (this can be with the same or another lender)

    Now this is just a general structure – and may need some tweaking depending on your circumstances and longer term goals.

    Hope that helps.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Apprentice Investor. wrote:
    Thanks Benny I've booked in to see a MB next week. Cheers

    Best of luck. Don't hesitate to post back on the forum if you're worried about anything.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Qlds007 wrote:
    Would love to come along but i think i miss out on the age policy?

    Cheers

    Yours in Finance

    lol – they're open to others on request. I think they might just accept you.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Hi AM

    I'm with Richard – I guess you could do it but I can't really see any huge benefit from doing so.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Richard's spot on. It doesn't happen over night.

    As a start – surround yourself with some good people – a decent accountant, finance person and a BA if required. 

    I'm not sure how you're going to go with finding CF+ properties in Melb  – you may have to look at other areas (but happy to be corrected).

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Hiya

    What's the main reason for doing this?

    Does the LOC against the PPOR have a really high rate?

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    mattliasiian wrote:
    Hey Jamie, yeah I am thinking in the future I will, to be honest don't have a exact time frame but if business succeed and enough capital is gained anything can happen.

    Thanks Jamie

    Matt

    OK – it's important that you set up the loan as interest only with an offset rather than principle and interest. This article I wrote explains the concept.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Apprentice Investor. wrote:
    Thanks New Guy. No there not crossed at all. That's just how it has worked out so far with moving into the property first. I totally agree being married with two kids and hate moving myself, it's just what I've had to do with work for the last couple of years. I could even be in my PPO

    R a while longer yet after this year depending on work, but I'm keen to find another IP in the mean time till we get to final place of residency. I'm trying work out what the best way to structure it all, I'll be using a different lender/mortgage broker for my next investment. Any advice in who'd be the best to go talk with in what I'm trying to achieve etc. Accountant, Financial Adviser?

    Hiya

    You’d be better off seeking advice from a mortgage broker rather than a fin planner. If you’re comfortable with dealing over phone and email then you can choose to use any broker in the country.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Hiya

    If you're going to pay down any loan it should be your PPOR – not IP. The reason is due to the PPOR debt not being deductible whereas the IP debt is.

    Is there a chance this new PPOR could become an IP as well at some point?

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    TheNewGuy wrote:
    In my mind I'm happy to do a buy and hold (I'm in my early 30s), with a combination of yield and growth across the portfolio with the eventual idea of paying them off for a passive income around retirement…

    Sounds like me :-) just with the odd reno thrown in.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Hi Paul

    Tread carefully and don't second guess yourself – they will try and convince you otherwise but the fact of the matter is that the advice they are providing is wrong and will cost you in LMI and poor structuring.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    I doubt you'll find much value from a fin planner. Be careful if they try to push you towards purchasing property – particularly off the plan stuff. 

    I don't personally know of any decent bankers in Canberra – but of course I'm also probably quite biased.

    If you're looking for a BA for SE QLD you could try Richard Taylor/Jac M or Andrew Allen. I don't know if they're targeting these specific areas but you could always ask them.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Hiya Waydo

    There's been a fair bit of activity in West Syd for a while now – I had clients only a year or two ago buying for low $200's – now they seem to be selling for a fair bit more. It's a big area though and there will always be opportunities. Personally, I'd keep my eyes open on other areas too.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Run for the hills.

    They're crossing your loans up.

    There is no reason why the LMI shouldn't be credited – unless they changed LMI providers since you took our your loan(which I doubt). Which bank is this?

    Just goes to show the incompetence of some bankers.

    From your previous posts, YOU have a better understanding of IP structuring compared to the banker you spoke with.

    On a positive note – you may have just saved yourself $6,8000 in LMI by posting on this forum :-)

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Hi Paul

    You may need to look a bit further aboard and use one remotely if you're after extensive IP experience. I can't think of any – but could possibly point you in the right direction in Syd.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    All comes down to purpose – what are the funds that are being redrawn used for? If it's for investment purposes it will be deductible. If not, it won't.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Hiya

    Usually just need to provide the statement for the account that the deposit/costs are coming from.

    CBA will want to see statements from your main transaction account if it's not with Cba.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    My pleasure – just post again if you have any dramas with your bank.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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Viewing 20 posts - 1,001 through 1,020 (of 5,007 total)