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junkyster
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@junkyster
Join Date: 2011
Post Count: 5
January 3, 2014 - 4:32 am
Terryw wrote:
Above you seemed to say that there was no loan on the CBD apartment. Are you now saying you are going to mortgage the apartment, borrow money and pay out the townhouse? If so you would be shuffling money around with no benefit.
That's what I thought, so the shuffling around is optional. I will just refinance if that was the case as I'm changing banks for better rate.
Terryw wrote:
One is for you to buy your wife's apartment at full market value. Use the proceeds to pay off your townhouse. Charge the tenants market rent – even if you may have to gift them the money to pay. This way you get rid of non deductible debt, avoid stamp duty, save a heap of tax and are in a good position to invest.
This is an interesting one for me to think over. Instead of buying over, I could 'transfer' the property to my name and do the above as well? I believe there is no stamp duty when transferring between spouse? More research for the weekend!
vagirl2012 wrote:
Welcome and good luck in your investing adventure!
Thanks
junkyster
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@junkyster
Join Date: 2011
Post Count: 5
January 3, 2014 - 1:39 am
Jamie M wrote:
Yep it's possible – just ensure that the bank isn't crossing up your loans. Also, is there a chance that this property could become an IP down the track (your current PPOR I'm talking about)?
Possibly, in a few years time (>3 years). We have thought the current place is sufficient for us – until the family grows again.
junkyster
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@junkyster
Join Date: 2011
Post Count: 5
January 2, 2014 - 11:00 pm
Hey guys,
Just spoke to the bank today, they are currently processing the CBD apartment loan. Once approved, I am hoping to pay off the townhouse first.
From here, I could mortgage back the townhouse on an IO loan to start looking for another investment property.
Is this feasible?
Thanks,
JunK
junkyster
Participant
@junkyster
Join Date: 2011
Post Count: 5
January 2, 2014 - 4:52 am
Thanks @xdrew, that was the same thoughts I have 2 years ago (with less income and without the 2 kids). I thought this year work out our finances better, and work towards our first investment property!
@thefinanceshop, yes, definitely change to IO loan when converted to IP – been following that thread as well. The bank approved $435k, so thats the max we could go.