isn't tax irrelevant when comparing the two. If he takes money out of his offset account which is linked to an investment property, the interest expense will be higher and his tax benefit (tax shield) will be lower. If that 50K was put into a TD, then he would have to pay tax on the interest.So the important thing here is the rates between the…[Read more]

I was thinking of refinancing my mortgage to the Heritage Building Society 3 year fixed rate of 6.75%.

From what I can see on the Mates Rates Mortgages website (http://matesratesmortgages.com.au/mortgage-lenders/mortgage-broker-commissions), Heritage gives the following commissions to its brokers:

Upfront Commission: 0.605% inc GST (0.55% exc…[Read more]

If you want to keep both houses, wouldnt it be better to rent your current PPOR out and rent out yourself at a much cheaper rate.Rent your current PPOR as a permanent rental, which means you will not need the 30K for furniture and move to a smaller unit which will have significantly cheaper rent.However as others have said, I would probably sell…[Read more]

Thanks for the replies.Land tax is a big expense for many Sydney investment property owners as there are many propertiesIP's which have a land value greater than $380,000.With regards to asset protection, as both you and Terry have pointed out, this structure will not provide much asset protection but I think is the cheapest way to own an IP with…[Read more]

Thanks Terry,

Thats what my manager told me as well. He said the accounting/tax side of it was fine but the banks will kick up a stink with this structure.

I was shying away from a Discretionary trust due to it not receiving the Land Tax threshold of $380,000 in NSW which is quite a fair bit at $6460 (380K*1.7%).

Regarding Duplex builders, I advise you not to go with Eagle Homes as we have had a lot of trouble with them.On face value they seem very cheap but will not provide anywhere near the service or support that other builders provide.

Thanks for the advice,

Im quite sure I wont get a loan from CBA.

So based on my situation, what is the most cost effective thing to do, considering the break fee for the loan is $700.00 and interest rate I pay is 5.06% and would you have any lenders or loan products in mind.

Thanks and Cheers,

Mohammad

I am in a similar boat, being 19 (turning 20 in August) and have been working full time for a year and a half.

I bought an investment property last year and am looking for another one to buy.

I was particularly interested in Display homes and I have found three which I like since they are at market price and are positively geared.

Well my…[Read more]