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Hi guys.
Thanks for your awesome replies (and sorry for my delay to say thanks… been away in the sun!)duckster wrote:If you have a debt component that is private and then mix it with investment debt in an LOC it gets really messy to work out which part of interest charged is private use and which part is investment use.
I recommend you talk to the bank and see if you can resize the LOC if it has been paid down to a smaller limit and then open another LOC with say a 30K or 40K limit for investment purposes to make tax time easier.
Your bank may allow more than one LOC account I myself have two and could have upto seven with my bank.I was intending to pay down the existing LOC to $0, then use it for a deposit on an IP… and that way things are less messy. But I like your suggestion better, and thanks for that. I’ll talk to my mortgage broker about doing this.
Also thanks for the 6 years tip. I recall it now from my uni studies, and may look at moving back in a 4-6 years down the track (rather than rent as we intend), so I can take advantage of the GCT concession.
Terryw… I’ve been told by my broker that 95% LVR is possible via my existing bank (CBA) as I am an existing customer. But I’ve noticed that these things tend to change quickly.
Thanks guys. The plan is slowly coming together, and I’m really keen to get things moving.
Hi Sharon
Could it be that the $40,000 profit Steve is talking about is over and above the $86,000 cash invested. A profit in my mind would be the surplus cash, after having taken out initial costs such as the $86,000 put in.
Regards,
Andre
