Love to give some advice..not enough info though.

Post some financials or drop me an email and I will run your figures.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Shaun,

PPOR = Principal Place of Residence = Your home.

If you pay out the entire debt now you can then draw against the PPOR to buy the next one.

This is more tax effective. Please feel free to give me a call and I will be happy to explain it to you. I sometimes struggle to get my points accross by typing!

Cheers

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

I will have a crack at this. NSW terms used.

Torrens title is the normal style of title for the average home. The owner owns the land and house outright.

Old style titles are pre torrens. As they are sold they are converted to torrens.

Strata refers to multi dwellings on one title. The Owners Corporation or Body Corporate owns the land and the building. The owner owns the inside space including the interior paint. They should seek approval to pierce or damage any exterior wall. Contributions are made to cover the maintenance, insurance etc for the building and common areas.

Company title is where a company is formed to purchase an entire building. Individuals buying an apartment buy the corresponding number of shares in the company and have ownership of their apartment. Not so popular as the other shareholders can block any sale.

Hope this helps.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Can I ask what your motivation is to wrap the property?

You already have the perfect tenants. By wrapping you will limit your growth potential for a marginally higher cashflow.

I am not suggesting that it is a bad idea – just genuinely curious as to why you are considering this path.

Regards,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Assuming you never lived in this property you will be up for CGT on the profit you made after buying, selling and reno costs are taken into account.

If you hold the place for more than 12 months the CGT is halved.

If you have occupied it as your home you may be exempt from paying CGT – see your accountant for more detail.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Remember that most IO facilities are only five years with a few being longer. A LOC is IO for the term.

The average person with their 5 year IO term will still pay off the loan but enjoy lower repayments for the first five years – poss when cash is tightest!

It really isn’t a huge difference and is very much a personal choice thing.

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Usually worked out as follows.

rent x 52 divided by purchase price x 100

ie

$200pw x 52 divided by $200 000 x 100 = 5.2%

Useful to compare properties when inspecting with a calculator in hand []

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Check out

http://www.osr.nsw.gov.au/portal/page?_pageid=33,63650&_dad=portal&_schema=OSRPTLT

Cheers,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Jason,

They are very similar advice.

We both suggested they sell the property to shift the equity to the new property.

Richard suggested buying different properties whereas I described a way to retain the existing property.

The course they choose will be up to them. If they want to keep the property then my idea would be worth exploring with an accountant.

Good luck,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

You can get it back but it isn’t a simple application.

BIO is the Banking Ombudsman and I agree that a mention of him usually helps get things moving.

Good luck,

Simon Macks
Mortgage Broker
[email protected]
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.