Not sure under NCCP I like the sounds of creative but I think I am resourceful.

If you let me know what you are trying to achieve we can comment further.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.

Hi Matt

Jacqui is so right the hardest part is to quantify how much you will benefit from such a program when you compare how you could spend the money elsewhere.

As an example you could engage an investment Buyers Agent and spend a lot less than $10K and get a property which will do the job and get you your way.

As an organisation we try and tailor our property acquisition to suit the financial requirement of our individual clients.

Some clients are seeking income whilst others want capital growth. Some need development potential others want something they can renovate to add value. Interstate or overseas clients want a hassle free investment which just keeps on spitting out rent.

I have never heard of Helen Collier-Hogtevs (in saying that she has probably never heard of me) but all i would say is ensure that before you spend this sort of money the person offering such advice has a good track record. Seen too many so called educators who are still paying off their own home loan or who haven’t purchased an IP before but are happy to take your money.

Cheers

Yours in Finance.
0-40 Properties in a decade. Email me for a copy of my API interview.

Redraw at your own peril as the entire loan will then be contaminated and interest cannot be claimed.

Seek advice before doing anything.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.

Saw one last year where the borrower had transferred the property and then borrowed 100% of the valuation trying to claim the full loan as a Tax deduction.

The ATO had queried it and in fact disallowed the interest on the whole loan.

Another good bit of advice from the clients NAB Banker.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API Interview.

Yani congratulation on realising you need to do something and buying your first IP is a good start.

I think you have answered your own question.

Basic Keynesian economics tells us in the short term output which includes construction is strongly influenced by aggregate demand (events like a new university) but once demand is met prices start to fall.

Whilst buying somewhere close to you might feel like the right decision if the market is not right don’t force the issue and look elsewhere.

Owning your home is a great launch pad to financial success and done properly you could certainly look at rental income replacing your PAYG income over time. Make sure you structure your lending correctly as it is so hard to earn in the first place and the last thing you want to do is lose it with some poor advice.

Have a read of my API interview and you might get some ideas on how to retire on rent.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.

Hate to say wearing my Buyers Agent hat for a second we wouldn’t buy in West Toowoomba at the moment.

We are still buying in the City for forum members but other parts of Toowoomba are proving more attractive and produce solid rental demand.

I know this doesn’t help you but would suggest you focus on the matter in hand.

Look at dropping the rent to meet the market, remember you can always increase it at the end of the lease period.

Have prepared your Depreciation report (if you haven’t already done so) allowing you to lodge your Tax variation.

Finally review your current loans. Saving a few dollars here and there will make a big difference to your cash flow.

With lenders increasing the margin on interest only loans we always recommend a client review their situation every couple of years.

Finally, good luck and sorry it appears you have been sucked in by so called Professionals. I promise we are not all like that.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.

Hi Ranger

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

Yes your theory is correct and I assume your existing loan on the Melbourne property is interest only.
Ensure the equity release is a separate loan and not an increase to the existing investment loan.

Keep the loans separate and ideally with different lenders.

At this sort of loan amount you should be able to obtain a competitive rate of interest.

Of course having said all of this there may be another option to consider to maximize your deductible interest and reduce your nondeductible PPOR interest.

Not sure of your current marital situation but if you are married and the current PPOR is in joint names you might want to look at transferring the property into your sole name. You would look to buy out your partners share in the property and borrow accordingly.

The interest on the additional funds would be Tax deductible and could then be added to your deposit on the new PPOR.

Just make sure your Broker is aware of some of the tricks involved in such a strategy.

Cheers

Yours in Finance
0-40 Properties in a decade. Email for a copy of my API interview

• This reply was modified 9 years, 4 months ago by  Richard Taylor.

Hi Dave

Firstly congratulations on starting to plan for your first IP certainly exciting times.

Yes a 95% lvr on an investment loan is available but i have to say it is very unlikely you would qualify as this loan would be credit scored and without owing other property it is doubtful you would be accepted.

In addition you need to understand that LMI would be deducted from the loan amount and therefore you need to cover this cost on settlement.
The premium rate on a 95% lvr is a lot higher than it would be at 90% because of the added risk and therefore you are often better off to take 90% + LMI than you are to take 95% less LMI.

Of course more and more lenders are now insisting that the 90% is inclusive of LMI but there are still few exceptions to the rule.

Have you considered buying a property as a PPOR, satisfying the stamp duty requirements in the State and then renting the property out down the track.

You won’t get a 95% interest only loan on a PPOR but it might save you a few dollars in entry costs in relation to stamp duty etc.

I hear on the grape vine a new lender is coming to market with a blended 100% loan but at this stage we can’t release any further details.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.

Poor advice from your Broker / Conveyancer as there are a couple of ways around it.

Hate to say too late now.

Cheers

Yours in Finance
0-40 properties in a decade. Email me for a copy of my API interview.

Very much doubt you will get 95% lvr and it is NAB it will be 90%.

LMI is deductible over 5 years or the term of the loan whichever is the shorter.

Premium proportionalised in Year 1.

Cheers

Yours in Finance
0-40 Properties in a decade. Email me for a copy of my API interview.