Hi Luke

Interest only loans can be set up for various terms depending on the lender – 5 years is quite normal. Some will go up to 15.

Most investors roll over to another IO period once the existing expires.

Sounds like IO with offset is the way to go for you.

Cheers

Jamie

Hi Thorpe

Are you planning on buying a PPOR at some point down the track?

If so, you really don't want to pay down the principle on your current tax deductible debt if there's a chance you'll have a non-deductible PPOR debt in the future.

IO loans with an offset provide for maximum flexibility in the future. One of the only times when it's not an ideal option is if you're bad with money and will be tempted to simply make the minimum interest repayments each month and not drop any savings into your offset account. In that case, P&I is a forced savings mechanism.

Cheers

Jamie

Hi Serena

I used this website hipages.com.au the other day to get quotes from builders to repair a retaining wall for a Canberra IP. You just provide a brief outline of the job and you'll get a few builders coming back with quotes.

Cheers

Jamie

Hi John

The Australian consulate should do the trick.

Cheers

Jamie

Usually just one account will suffice.

Cheers

Jamie

No worries.

I'm pretty sure it was written into the last lease we signed off on.

Cheers

Jamie

Hi Boshie

Sounds biased but prob best to chat with a decent broker about your options – I doubt the WBC branchie is going to have a clue about correct loan structuring.

cheers

Jamie

I don't see an issue with a brick finish.

Like Jac said – painted concrete can look pretty run down if it's not maintained. There's a block of apartments near an IP that I own that are painted white and it hasn't been maintained in ages – it looks terrible.

Cheers

Jamie

What rates do your currently have?

Have you factored in all the costs of refinancing? There's state govt. fees, lender discharge fees, possible new lender application fees – this will apply to three loans as well.

I know it's said all the time, but rate really isn't the be all and end all. Once you factor in the costs of refinancing you might find that a small rate drop might not make you better off for a long time.

Having said that, CBA's doing a cash rebate on refi's at the moment that will cover some (if not all) of these costs. Not sure what sort of pricing they'd do – possibly 5.45%, it would have to be negotiated with them.

Cheers

Jamie

Hi Tim

Some lenders allow you take the loan up to 90% of the properties value. So in this instance, if the property is worth $300k – you take the loan up to 90% which is $270k.

This $270k minus the current loan of $240k gives you an equity release of $30k

There are certain lenders that will do an equity release up to 95% but they are tough deals to get approved.

If you've already paid LMI, then you won't be charged a new premium – just an increase on the existing or an admin charge.

Cheers

Jamie