Hi Pep 

Not sure if it helps but we've got a spreadsheet on our website that helps crunch the numbers on deals.

Cheers

Jamie

Have to disagree with you Adrian.

I wouldn't take out a fixed loan for renos.

At least with a variable product you'd only be required to make repayments on the portion of the loan that's used. Which is important for renos because  they can take time to complete so you might find yourself paying tradies bills over the next few months to a year.

Cheers

Jamie

Why not?

Additional cashflow = increased servicing.

I understand what you're saying about available equity usually being an issue before servicing for a lot of investors – but I wouldn't say CF+ properties don't help with servicing. They certainly don't hurt it.

Cheers

Jamie

I'd keep them all as IO with an offset linked to one. Park any spare cash you have in that offset.

Keeping the loans IO will also improve your borrowing capacity with some lenders as well.

Cheers

Jamie

Only 2 weeks and 6 days a way

Cheers

Jamie

Mick's right, a 95% internal refi with CBA is no easy feat.

What will be the purpose of the equity release? Future IP purchase prob won't cut it without a contract of sale. Home improvements with some quotes can do the trick – we got a $48k increase over the line at 95% based on this purpose.

Cheers

Jamie

Yep – if a property is negatively geared, the owner is speculating that the long term capital growth from the property will outweigh the costs.

However, with negatively geared properties (and coupled with depreciation and other running costs)  there's generally a tax return at EOFY that reduces the out of pocket costs (that's assuming that whoever your talking about isn't already incorporating these into their ongoing holding costs).

Cheers

Jamie

Hi and welcome aboard.

I can't comment on your borrowing capacity without knowing the finer details of your S/E financials – which I wouldn't expect you to air on a public forum

You've got a good equity base to get you started – to access that equity, you'll need your mate to agree to the equity release as well.

Going forward, I would avoid using your own cash for deposits on IPs – instead, you can look to inject the cash into your PPOR loan and reborrow for IP purposes.

When financing properties that you're looking to subdivide/develop – you'll need to use lenders that are conducive to this, preferably lenders that allow multiple dwellings at higher LVRs.

Pete Tersteeg from Sage Lending is in Vic (Nunawading)

Cheers

Jamie

Hi John

Is your current home loan an owner occupied or investment home loan?

If owner occupied, it would be best to set up a second loan split instead of redrawing the funds. This is due to the need to distinguish deductible from non-deductible debt. 

By simply redrawing the funds, you face the risk of contaminating deductible debt amongst non-deductible debt.

Cheers

Jamie

I remember a similar story last year where the realestate.com ad for a rental showed pics of the backyard – one of the pics identified a small crop of "weeds" that landed the tenants in a bit of trouble.

Cheers

Jamie