Last thing you would want is to resign and walk away as a Director only to get a call some years later that the Company could not settle its Debts and the Guarantee in favour of the Bank was still valid.

I certainly would be getting the loan refinanced or something clear from the lenders legal department to confirm that your Guarantee was released in full.

Hi Talis

Yes the interest pre-paid where the funds have been used for investment would be Tax deductible in the financial year in which the interest was paid. I.e before June 30 this year could be claimed this year.

Not so easy to access the equity upfront however with a good structure then no reason why what you want to achieve cannot be done.

Using your PPOR as security means you are not resticted on the stocks or type of investment you ahev to acquire (As you would be under a Margin Loan) so could look a combination of Instalment Warrants and Options to maximise your return and make your funds go further.

Of course pushing for a higher return also brings with it a high potential risk.

With Business Income you will need 2 Years Tax returns before it will be considered by most lenders.

Terry has already pointed out that lenders wont lend where they knowingly are aware of the presence of  Vendor Finance.
(This is of course unless you get approval at National Credit level and can show it is part of an overall Business income strategy).

How creative, where is the location, security etc.

Need more info.

Hopefully you got my response in the finance section.

Hi Kyan

No what he would do is reduce loan on IP1 to 80% of the market value and take suplus borrowing on PPOR. 

I have another forum client who was in exactly the same position with his Bank who we are working with at the moment.

Seems to be a common thread than Banks like more security than necessary.

If in doubt get him to contact a mortgage broker au fait with securities and structures.

I agree with Terry that having equity in your properties enables you to push out the barrow a lot further than your standard income may permit.
 
Even on a PAYG basis there are a lot of lenders that will go to a higher DSR where the loan amount is less than say 80%.

PAYG Lodoc is still very much alive and especially in occupations where bonus, overtime etc maybe earnt.

Not ever lender takes 75-80% of the rent when assessing your income.

Some add back the negative gearing interest others dont.

I still stand by my assumption that because a couple of MB said NO does not mean it is the end of the world.

Plan upfront and seek professional Tax advice but buying in Trust definately will not increase the amount you can borrow.

Each lender will have its own favour agent for each town and region.

These lists are not publically advertised as for say somewhere like the US.

Just need to look in your local paper or talk to a couple of agents and see if they act for an particular lender.

Hi Carlito

Sure drop me a line and I would be happy to email you a Residex report for any particular property .

Just need the actual street address.