Awesome Thread !- very useful information indeed

Just one question, if you go to the bank and say you want to take out another loan and only have it secured against the new IP, is there a way to distinguish whether the loan is CC or not? I mean it’s all good in word but if the lender makes a blunder and CC anyway, how would one know?

Terryw wrote:
If you borrow money to invest, then it is generally tax deductible. Taking money from a LOC is borrowing money. I would keep the LOC totally separate – no personal use at all if possible. Also look into borrowing from the LOC to pay expenses and keep your cash  available for personal use – put it in your offset on the home loan if…[Read more]

Thanks Guys

So getting signature from tennant on back of photos is more important is more preferred than timestamp?

Hi All,Just an update – Just spoke to my Banker and apparently to restructure an existing loan from PPOR to IP you will liable to another round Stamp Duty!Also the stamp duty is not tax deductable even if you're paying that through borrowingsCheers

Does Nancy Keep work on weekends and is an appointment required?

Why are all the highly regarded property investor type accountants all in kew?* rolls up sleeve * well if thats what it takes that's what it takes – * taking car to petrol station to fuel up *

First off, thanks to all who answered I really appreciate it Say I'm in the following situation with a PI loan:Loan balance:  80KEquity:              20K (i.e. built up via PI loan only – ignoring cap. growth)Offset:              10K2 months down the track I decide to turn this into an IP by switching to an IO loan (as from what I understand thi…[Read more]

"however you are unable to refinance and redraw the funds or take out any advance payments and still get the same deduction."Richard – is this because the extra payments made were into a PPOR? What happens when the PPOR is turned into an IP with extra payments continuing and 6 months down the track you decide to refinance, is the extra payment…[Read more]

"Anyone know of a good accountant on the west side of Melbourne ?"Ditto. If anyone has recommendations for a reliable property accountant on the west side please post

" What happens if 5 years down the track when you have paid off 100K of principal or so on your PPOR you decide to buy another PPOR and rent this one out. You need 100% + costs of the new purchase price but are shocked to realise that only the existing balance is deductible on your current home loan and that the new PPOR will have 106% borrowing…[Read more]

Event Horizon – pls consider the following exampleTotal House Value – $300KTotal Loan Remaining – $170KTotal Equity – $120KIf I were to borrow against the full equity amount (i.e. 120K) will the new figures be -Total House Value – $300KTotal Loan Remaining – $300KTotal Equity – $0KSorry should've explained with an example at the startThanks

Thanks Hienug!It looks like landlord insurance is a must. Any you recommend?Had a look at ING and it looks quite promising – even covers theft of content and  legal cost against the tennantKenzel

Hi All,I really appreciate all the reponses. I've already called to get Gas and Electric connected on Settlement and was about to do the same for water until I saw dictem's response – thanks alot How silly would I have been!Cheers,Ken

Thanks for all the responsesSince posting the question I've visited Land Vic's website and found that it's the tenant's responsibility to decide what utilities they want connected and pay for any bills associated. This is applicable toVictoria and for anyone who's interested you can find more info…[Read more]

G'day All,First of all thanks for all you replies Young Investor – I'm just starting out also and the way I calculate the percentage of my salary that goes into investing is (for -ve geared investment as in my case):[ (Total Annual Expenses/12) – (Total Monthly Rent Income) ] * 100 / (Total Monthly Wage)This may not be the correct way of…[Read more]

..and oh yeah something I forgot to include.What is meant by easements and inspection professional indemnity?Thanks in Advance

Hi All,Nina – I really hope things turn out better for you in the not too distant future.L.A. Aussie – You mentioned:"Read all the Margaret Lomas books, Noel Whittaker, Jan Somers, Peter Spann, Steve McNight's (later) books for nuts and bolts." – Are you able to recommend any specific titles from these Authors? I'm looking to by my PPOR in 1…[Read more]

Good advice Simon. Well I have no financial goal at the moment as such but rather a goal to own my first property and not a mortgage. I do agree about buying a house sooner rather than later though because they tend to appreciate that's why I plan to rent my PPOR out after living in it for 1 year (FHOG) and use that income as well as the…[Read more]

Thanks GuysOpportunity…- I think you're right about only being able to claim back interest that you paid only if the proprty is rented out (income producing). Either way I'm leaning towards a PI loan so that I'll own a property outright in a shorter period and once I have that I'll use the equity and IO loan for purchase of a IP. How does that…[Read more]

Must be built after 1987 (preferrably 5-15 years old), to maximise Tax Returns and cashflow from "on-paper" deductions.Thanks LA Aussie! I did some research and just found that you can actually claim Building Allowance of 2.5% of the construction cost – I never knew that! This property investing jazz is really sucking me in One question though,…[Read more]