Thanks guys, I wasn't aware it could be difficult as your always hear the stories 'refinance to release equity' .. I didnt realize there were specific uses for the money your allowed if you get it across the line.

If you refinance to say 90% does that open up more doors? i.e. less strict lending criteria? 85% less again? Or it as simple as, an…[Read more]

I was looking to lock in 5.29 on IO as thats a a good rate IMO, the reason i was looking to do a 2 year rate, is because after the fixed rate finishes, it reverts to the standard variable rate anyway? and if i have the remaining 10% in variable, i can offset against that and knock over some principle in the mean time..

For the wealth package to…[Read more]

PPOR, commbank will only partial offset the fixed at 1.5%, so i wasnt sure if i could say what loan the offset will be linked to. I was planning on fixing 90% at 5.29% IO, and having the variable rate at 5.8% with the wealth package and the offset linked to that.. Then revisit it after 2 year, i should have close to the 50k in variable payed off..

I think she meant Loan B to cover 20% deposit + purchasing costs. Just didn’t say the words, but appears pretty obvious.

When borrowing to invest, i’m wondering if someone can tell me if you can capitalize costs, and how LMI is impacted?

Say I wanted to borrow $144k on a property, 160k. Thats a 10% deposit;

i) Is the LMI quoted on the 90% LVR figure? or the figure of the 144k + LMI = quote? (91-92% or there abouts?)

Can you capitalize other costs, such as stamp…[Read more]

Touche. Thanks mate

Thanks Michael, makes total sense.. And I can see how that could happen in those financial times..

I’m not to fussed about the interest rate as such, I was quoting it to say it appears really good, and raised the questions because its safe to assume there’s something up with it.

If these smaller lenders are so open to volatility in their books,…[Read more]

I will do a more in depth search to find out.

I thought my post made it obvious that I wasn’t chasing Interest rate and interest rate alone, with comments like what IS the difference between SCMC and other banks in regards to future lending etc..

A dig at having ‘short momories’ in relation to the RHG is unwarranted, since it implies my post was…[Read more]

I know Mudgee, NSW has a major expansion of coal mining underway. Ulan West Underground, Moolarben Open cut + underground, Wilpingjon (I think its spelt) expanding..

Prices seem to be pretty high to reflect this at the moment IMO, but I know for a fact there is an abundance of expansion, over several decades to come.

Is the split structure, a loan that would be $144 (loan a) and $36k (loan b) being the equity loan?

Why would the bank not allow a 2nd valuation? Just curios..

Thanks for the response guys. I’ll tryin’ explain best I can.

House price is $165k. should be looking at purchase price of around $160k.

10% deposit or $16k.. or maybe $17k just to be be sure i’m under the 90% LVR. I’ll pay stamp duty, fees etc out of my own pocket, so the loan balance should be around $144k or there-abouts.

Looking at doing…[Read more]

Thanks again.. I’ll see what I come up with!

Has given me a lot to think about. Thanks!

I was thinking if bought in a trust, yes there would be inital losses, but if say every 2nd year another IP was added, by the time you got to year 7-8, the first property or two should be CF+ to offset the new additional properties… Just wondering if the inital $5-7k loss in tax per year if a…[Read more]

I meant if we had say 4-5 properties, the trust would be viable becuase the rental income would be around 60-70k per year.

Is there much complication in refinancing to release equity to purchase a 2nd IP, if the property is owned by the trust?

Sorry Terry, it was a bit all over the place that 2nd half.

So it appears the trust would be beneficial if there were enough income generated to pay tax? I’ve heard people say a trust is good if your earning a decent amount 70-80k+ .. So if this was the case, it would require 4-5 properties in this price range to make that happen, which could…[Read more]

Great posts. Thanks for the deeper insight!

Firstly, Richard I wasn’t trying to imply that LMI was refundable, i’ve never heard of this, what I was getting at was = I know i’ll have ot pay LMI for a 10% deposit if I bought the property today. If i was to refinance in say 12 months, It would make sense to refinance to 80% of the new value to avoid…[Read more]

I see what you are saying now. I was misunderstanding the refinancing. I would keep the house long term, no intention to sell.

This is all hypothetical at this stage, no house inspection / building inspection has been done.

So, if all things are as assumed (rarely?) and we decide to purchase, with a cost of say, 160k. 10% deposit + costs, say…[Read more]

Loan repayments will be around 180-190p/w, with rent at 170. so reasonably close to being neutral, without taking other things into account.

Once my reno’s are done, it could be refinanced to increase my loan balance from around 150k to say 180-200k, increasing my weekly payment to more then the leased amount, keeping it negatively geared?

I expect the house to be neutrally geared / positive geared. I could possibly continue to re-finance to keep it negative, right?

Ahh ok. So what would be my best option with me working and my wife not, aside from the family trust? Thanks!