thanks Steve – this was exactly the type of response I hoping people would post.   BTW – Re "no longer offset the 'loss' from negative gearing against salary income" – do you think this would blow the "living off equity concept" out of the water?

Qlds007 wrote:
Yes SGB require 2 year ABN & GST registration and CBA 1 year ABN & GST.

So what are the remaining options then guys? (i.e. assuming you already have your full-doc buffer/deposit loan against your PPOR and you don't want to have to use more than 20%-30% from this as deposit towards the IP loan you are chasing)? If there's no…[Read more]

PS.  Add to the previous post I just did………….just thinking through the logistics of arranging the in's/out's if one was to go for one sub account per property: * Cheque Book – I assume you could get the bank to give one cheque book per sub-account to use? If yes then this would be ok. * VISA card – The St George Portfolio loan gives…[Read more]

thanks Terry – this is all making sense What have you/others found is better to do re the question of whether you have:(a) one sub-account for all of your IPs (i.e. all rents, all expenses come to/from this one sub-account) versus(b) one sub-account per property (i.e. for rent and expenses)(c) some other arrangement: perhaps all rent into one…[Read more]

Thanks Terry, All – I'm looking at a St George Portolio Loan (LOC) / Advantage Package arrangement. What would you recommend as a good way to set up the accounts? I have no PPOR debt. Questions still outstanding for me are: * Can you get an offset account against a LOC, or does it have to be a normal loan? (i.e. in which case if my main…[Read more]

can a LOC give you the same 100% offset (against investment loans) type benefit?   In particular if you're using the LOC for personal and investment usage how can you ensure that if you put your pay into the account that offset benefit goes 100% to your investment properties?

Richard – I'd be interested in your comment re whether one is better off saving the extra 0.1% for a LOC (well this is what it seems to be in the St George bank products) and run with a standard packaged arrangement with variable rate loan, and then use the draw-down and 100% offset appropriately.  Apart of ease of use is there a case to prove…[Read more]

thanks pjreno,I just posted a question re how to identify land to build at https://www.propertyinvesting.com/forums/property-investing/help-needed/4323843?#comment-169349 . It'd be great if you could reply with an tips / your approach if you have a few moments.From your perspective have you found Building can give you additional equity by the time…[Read more]

Thanks – I picked up "Australian Residential Property Development – A Step-by-step guide for investors" today and have been going through it. Also have been reviewing the online Brisbane Council Planning material too. What's missing so far is some concrete suggestions re identifying an appropriate piece of land. Can anyone provide some tips on…[Read more]

JONCHU wrote:
I have built in the past at around $1000 x sqm (mythical in some areas).

Tks.  BTW – This is square metres regarding the floor space of the building?  So if it's two stories you effectively you would have 2 x FootprintOnLand x $1000/sqm?  

excellent – thanksBTW – I'm assuming texts like this wouldn't actually give indicative building costs.  Any suggestions re how to get a rough handle on the cost of building units?  Or is it a matter of contacting builders?  At this stage I'm interesting in just having a look at how the numbers pan out if one were to consider building, un…[Read more]

Kylie – I'd be interested in you had and advice for my question I posted at https://www.propertyinvesting.com/forums/property-investing/help-needed/4323843

in this case the redraw is for the deposit on the IP loan so that should be ok then nosorry, put in the wrong link (copy/paste error) – try…[Read more]

I did find this ruling…https://www.propertyinvesting.com/forums/getting-technical/finance/4323792#comment-169207

Hey Richard – well that would be bad news      But really considering a lady from the ATO gave me the advice how do I really know.   Any suggestions on what I would need to do to confirm the situation for myself?  (look up tax laws if you think its clear / get a ruling / ask & trust one's account?)

Called my PPOR lender.  Turns out better for me to switch to their basic variable rate loan for a better interest rate & less fees.  I've already fully paid off my PPOR itself (i.e. the loan is really zero now, just have some re-draw capability on it) so I'm hoping this should be ok/clear for ATO.

ok – so in this case however I guess you need to decide whether you (a) create this new LOC (against PPOR) from your existing PPOR lender, or (b) just use your new IP lender to create such a PPOR LOC.   Perhaps the latter option (a) has less fees (?) as you're already establishing a new package potentially, but the former option (b) keeps the P…[Read more]

Qlds007 wrote:
Just make sure you dont redraw on your PPOR loan

sorry – you threw me here Richard.  Given I need to borrow a little (against my PPOR) to get the 20% for my new IP investment, then why wouldn't I just use my existing re-draw facility on my PPOR home loan?  Following this approach this would satisfy the suggestions of making s…[Read more]

this make sense to me Richard – so if I wanted I could use the same lender for my IP as my PPOR, however I should make sure that I don't have my PPOR referenced in the loan as collateral, is this right?  Instead I could use Full-Doc to prove income and only borrow 80% then.The only other question would be in my case I need to redraw on my fully…[Read more]

Terryw wrote:

mixedup wrote:

Terryw wrote:
put the extra in the offset and it will save the same interest

(sound of penny dropping) Got it!  What threw me was I was assuming an "offset" account was like the one I had years back on my house whereby it was just that interest you made on the offset account could be moved to the home loan and…[Read more]