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This is what we got told when we were leasing our place as we had some defence people for our property. This was in qld
well have spoken to a few buisness owners in moranbah and rents are getting to expensive for them to rent houses. alot of them are housing there workers in dongas in the industrial area where the have there buisness. the problem they have now is the mac camp in town that use to serve casual meals to people that did not stay at the camp are not doind it any more. so now they have to come up with alternative arrangements. i was also told that since the rents have gone up to $2000 a week that there are more vacant rentals. but if you go for a drive into moranbah there is still alot of work happening out there. alot of mines are doing expansions. honestly i can see it slowing down in moranbah any time soon but whether the rents will stay as high as they are is another thing.
is there any real benifit to having a quantity survey done on our house as it was built say in 1975 and all we could depricate is what renovations we have done. some rule if it was built before 1987 you can't depricate it any further. i still think it is worth getting it done to atleast help offset some off the tax. what does everyone else think.
why not setup an IO with offset account pay the IO portion and then the difference between the IO and PI put into the offset account and use this as a kind of forced savings thus giving you money to use for the next property or have it there to payout the other loan when you get enough money if you want to go that way
just a thought
ok so went and seen the account and basically all we need to do is change our current loan from PI to IO and get the redraw account removed. Open another savings account for rent to go into and for expenses to come out of but these can come from anywhere. and when we buy a new PPOR we then have an offset account against this.
i am confused time to talk to the accountant again
so what you are saying is that we need to refinance our loan to create a new loan so this does not affect any borrowings and cross contaminate the loan
yes i understand that but does that still applly if i change the loan to IO and change the redraw account to an offset account and remove the redraw money before setting up the new loan
so at the moment we have about 10k in redraw and owe 280K on the house and 35K on another split which is IO so if we change the house loan to interest only with an offset account and move the 10K from redraw to another savings account before the new loan is setup while we are still living in our PPOR and then rent our house out in january would this be classed as new borrowings
Terryw wrote:Broker would likely get a new upfront commission from the new lender. This could be the motivation.Watch out for withdrawing money from the loan as if it goes towards the new PPOR then the interest won't be deductible and you will have mixed purpose loan.
I thought this is why you have an offset account attached to the IO loan. If i have all my spare funds in the offset account so that you could take money out of the offset account and say put towards the new PPOR. therefor not cross contaminating the loans
is this correct or not
what data would you like to see i can pm you if you would like to see what ou can suggest
i thought this is what i was meant to do. so when changing your PPOR to IP i thought I was meant to set it up as interest only with an offset account. is this not the case. I may have not made myself 100% clear as we will not be buying another PPOR straight away could be 6 months down the track. So what you are saying is that to change from the simplifier to the orange loan should not cost much at all. How much should we expect that to cost? From memory he did say that the orange loan was 0.1% higher interest rate than the simplifier loan is this also correct?
thanks for the comments
ok so i just went and check what our loan is and it is an ING MORTAGAE SIMPLIFIER. our broker was saying that if we wanted to change from this current loan to the ING IO with offset account it would cost us the same as refinancing is this true? and does ING only have 1 IO account with offset feature? I know if we wanted to change our current loan from PI to IO it would cost us $250 (this was the case last time we inquired) but if we want to change to there IO with offset it will cost us as much as refinancing is this correct?
we converted our garage into another room (not council approved) as we need more room for our daughter and all her toys and to keep the lounge room clear of all her toys. it would of cost us about the 5 – 7k mark to do this ourselves. we got a couple of quotes from some builders and the wanted about 16-20k to cut 2 holes in the wall and put 2 walls up one brick and one timber and supply and fit one window a sliding glass door and an internal sliding door and relocate a hot water system. so if you are getting quotes of 50-60k isn't to far from the cost.
Was just reading the local mackay paper and they were reporting that rents have doubled in moranbah in the last 12 months, where people were paying 750 a week are now having to pay 1500 plus a week looks good for the investor out there
thaks for that
say for an example if i was to buy a brand new piece of equipment for 500k including gst what is the monthly repayment that i would be looking at with or without residule. i have been offered x amount of dollars a month and just wondering if it would stack up as a viable option
tony,
we will be moving back to mackay next year after 12 years in brisbane. if you are worried about flooding stay away from glenella, greenfields, valetta gardens. these all got flooded last time. I guess what alot of people in these areas didn't relise was that when alot of this area wasn't developed it was all badly flooded back in 1990 from memory. walkerston or marian would be good for miners also if you want to look at sarina as there is more expansion going on at hay point. once we have moved back and settled in and look for an investment property i like the idea of one of the older duplex's that are around. these go for about 450k to 500k and real estate agents are saying if they are fully air con and looking good you can get up to 350 per week per 2 bedroom duplex.
cheers
leeFrom what i have read so far it does not matter with your PPOR but if you want to turn your PPOR into an IP you need to have your loan on interest only and have a 100% offset account so that you do not contaminate the IP loan so you can claim more against you tax.
thanks for the replies.
We will be looking to get around $400 a week for our house in brisbane and looking to spens no more than $500 week on rent in mackay. We will be renting house for a minimum of 12months with the plan to buy another ppor house in mackay. At this stage we are not planning to move back to brisbane.
Not sure if it is going to cause any problems but work will be paying me a LAFHA for 12 months to assit with the cost of rent and food. Basically it reduces the amount of tax i pay and i get an extra $16000 tax free. But as soon as i buy another ppor up there my LAFHA stops.
so what i need to be doing is
1. talk to an account that knows about property tax
2. talk to my mortgage broker about changing my loan to IO with offset account before changing PPOR to IP
3. have PPOR valued for tax purpose
4. get a deprication schedule doneIs there anything else we should be looking at?
With an offset account attached to the IP what are you allowed and not allowed to do with the money in the offset account. I know the purpose of the offset account is so you do not contaminate the loan. but can i put money into the offset account and take it out of the offset account as i need.
i see people talking about having split loans on here what is the benifit of having a split loan or a loan with an offset account or is this the same thing?
Ok as this seems to be a bit of a favourite topic that i have seen while doing some searches. What i have come up with so far is
1 talk to an account
2 we should get our loan change from a redraw to offset ?
3 we should look at selling the house before 6 years ?what else should we be looking at
