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Thanks Jamie
Just trying crunch some numbers regarding the post tax benefit (in particular savings we will be making) regarding the above situation, and need some help!! See additional info below:
*Current PPOR repayments = $ 439/wk (P&I) @ 7.16% interest
*Move out and rent @ $300/wk max
*Likely rent if PPOR becomes IP = $290+/wk (conservative, probably $310+/wk)
*Current PPOR 7yrs old
*We likely to self-manage + maintain the property if it becomes an IP.Also when we move out do we need to advise the bank that the property has been converted to IP, and should we request valuation of the PPOR just before moving out? At the moment we have approached our bank, and no issues with financing to IO with 100% offset, and we intend to stay in the PPOR for at least 6 mths.
Thanks Jamie for your valuable response.
Just wondering though whether we should leave the current loan type when refinancing to IO, and is there any implications with the refinancing, break fees, etc, and also any tax issues?
Also is it a good idea after opening the O/A to have all pay dropped into it and have the most of the bills if not all come from the O/A?
P.S – Also any positives out of our proposed future IP assuming we move out and become tenants to an affordable unit/townhouse?
Qlds007 wrote:Hi ScottyGrab a copy of July 2010 API magazine and you can read about how i got started.
Can anyone let me know what page it is in the API? Cheers
With regard to securing a 90% equity loan, do we have to open a LOC = 0.9 x $300k OR just a LOC (e.g 50k) to cover deposit & loan costs?
At the moment we thinking to limit our IP loan to $250k max and hope this will also help our serviceability when the property is rented out. What do you think of this idea Rich?Thanks a lot Richard for your valuable advice. I suppose we might have to save a bit to get our self to a more better position to secure an IP.
With regard to securing a 90% equity loan, do we have to open a LOC = 0.9 x $300k OR just a LOC (e.g 50k) to cover deposit & loan costs?
At the moment we thinking to limit our IP loan to $250k max and hope this will also help our serviceability when the property is rented out. What do you think of this idea Rich?We just had our property valued at $300k, does this help?
Is it possible at this stage to open LOC with my current bank and borrow 80% with a different bank? We will be using the LOC for deposit and to cover other purchase costs.
Thanks Rich for your help on this one. It appears that we will have to save a bit to get to a better solution. At the moment i'm on $55k & my partner is on $45k. I'm also wondering how would we go with using our PPOR for equity?
