One of the beauties of you wrapping the property to your daughter is you can set the sale price, interest rate and repayment program to suit her income.

I am not sure i would waste money on a Financial Adviser (unlike myself not all of FA promote property) as most of them only have one thing at heart and that is there pocket and not yours,

God carrying on like this I will get expelled.

Pleasure mate. Not going anywhere so hope to be here for many more years to come.

Tug

In the good old days like 6 months ago I would have said Yes you would be entitled to a partial refund but only if you sold it or refinanced elsewhere. Unfortunately these days no chance.

Also if you are staying with the same lender then no refund would be available anyway.

Not quiet Nil Tax in your position but i know what Terry means and agree.

No as long as the loans arent cross collateralised or cover under an All Monies Clause.

Who is / are the loan / s with ?

Problem with your strategy is that when you redraw the funds from the IP unless they are used for investment the interest is know not Tax deductible.

Keep it in the offset account and you not contaminated the Tax deductability of the interest as well as having the funds on call.

Sounds like a bargain.

Problem is it is a BYO mummy.

Hi Suehe

Rather than make a withdrawal from the fund why dont you look at merely buying the property in the name of your Suepranuation Fund (I am assuming it is a Self Managed Fund) paying cash for it and getting your daughter to rent it from you at a Commercial rent.

If you wanted your daughter to take ownership of the property you could always buy it and then wrap to her on Vendor terms and both you and she would benefit. She would receive the First Home Owners Grant which she could use to discharge her debt to you.

Certainly points to ponder.

Hi Mimi

With the equity you have you can purchase multiple properties subject to serviceability and do this immediately.

Depending on how many you buy they would all be under an 80% lend.

All you would do is use the line of credit to fund the deposit and costs again and take out a separate standalone loan on the investment property you are buying.

If you are thinking that way probably not a bad idea to get the structure set up soon rather than later so you can jump when the time comes.

Hydra

Whilst in mimi's case and in most case investors borrow 100% of the purchase price + costs it is how it is funded that is important.

Personally I wouldnt use my own PPOR as cross security for my investment property and that is why it is important to split the loans.

What you would do once the IP has increased in value is shift the debt solely onto the IP security.

With the above example i haveed to mimi let assume after a few years the IP valued had increased to $400,000 then 80% of this would be $320,000 and the investment loan would be increased from the original $240,000 to $320,000 with the $80,000 raised being used to discharge the portion of the IP loan secured against the PPOR.

Eventually as time goes on you might have a dozen or so properties all with loans secured against them and your PPOR totally unencumbered.

Hope that makes sense.