Sorry Max this is clearly not true

You have to make a will to gift your property to your relative.

You can do it merely by way of a simple Transfer form although as Terry has correctly mentioned the gifting may affect them when it comes to Pension entitlements.

Denny i think you are getting slightly confused on the situation.

You would look to take out a line of credit sitting in behind your current loan (and Yes Westpac offer LOC's) and use this to fund the 20% deposit plus costs.

Then on a standalone basis would secure an interest only on the new investment property.

As both the interest on the LOC and the interest secured against the new IP is for investment purposes the interest would tax deductible. The "purpose test" is applied rather than where the loan is secured.

In turn you could invest some of the funds from the LOC into the share market and the interest would still be deductible.

It could be secured against a motor bike or stamp collection if there was sufficient value in these assets for a lender to lender against them.

Neither of which carry friendly pricing though must be said.

Aslo credit policy is pretty tough and a lot of negatives.

Certainly could do better.

Hi again Kiwi

Ok in answer:

1) No a standard lender will not take your shares into consideration when lending for an new IP. You will need a separate marginal loan lender and this loan will taken out against the security of the shares solely. You can then use the funds as deposit for your IP.

2) Lender wont mind as you pay the mortgage insurance premium although they benefit from the policy.
   

Hi Luke

Yes there is.

Subject to all of the usual criteria (income, credit, etc) you would be able to obtain finance for a property living and working overseas.

Think you might it a big stretch to claim it is your PPOR unless you intend to come back and occupy it shortly.

Hi there

Firstly welcome to the forum and I hope you enjoy your time with us.

I am assuming when you refer to the shares as Capital you mean either:

1) You will liquidate them and want to use them as deposit and wondered whether the lender will accept this as proven savings.
 Answer – YES.

2) You want to offer them as security and gear against the.

Answer – Subject to the Companies in which hold shares in you would be able to take out a margin loan against them and use this as deposit. 

Limitations will be the amount you can borrow against them which realistically would be max 70-80% of their current valuation and the increased interest rate. Also need to consider how you would go in the event of a margin call.

Hi Matt

Welcome to the forum and I hope you enjoy your time with us.

I assume from your post comments your loan is with Anz.

In essence all you would do at this stage is either take out a separate Equity manager account to 80% of the current valuation and use this to fund the 20% deposit and the acqusition costs on your new investment property purchase.

Then in turn you would take out a totally standalone investment loan secured solely against the investment property itself.

If the current equity manager was used for personal purposes I would look to convert this to a standard P & I or interest only loan and link it to an Anz One being the Banks 100% offset product.

Hope this makes sense. Any questions fire away. 

Hi Sarah

Might like to search previous posts as Melton has been a running thread here and on other forums for some years.

Richard you want to make sure you hedge your currency position.

I agree although no need if the loan is in USD and the repayments are also in USD and the funds kept over there.