Never purchased there myself but have financed a couple of deals for clients recently and the valuation reports came back fine.

Depending on the LVR will determine the number of lenders and in particular the LVR the mortgage insurers will go to (think you will pushing a 95% lvr at present on a standalone security there).

Other than that yields appear to be holding up well and appears to be no shortage of tenants.

I am with Terry you wont get a second opportunity here so would try and maximise it.

Look at a 95% interest only loan with a 100% offset account so that when you move out you maximise the deductible interest.

Might be slightly biased but i live in the Western suburbs and own a number of properties in both Toowong, Taringa and Auchenflower and they have all perfromed extremely well.

You can "Can i re finance the house with the equity to then divert it into our future PPOR" but the interest will not be Tax Deductible

The Transfer of Title to your partner without Stamp Duty will vary from State to State (certainly here in Qld you would be liable for the Duty) so check that with the OSR in your Capital City. Must admit i would have been suprised it would be totaly exempt as it would be a 100% Transfer and not a Transfer of a percentage of the shares owned under a Tenants in Common arrangement.

Assuming you have combated this hurdle and decided there is enough benefit in making the Transfer then you would look to Transfer the security at the current market valuation borrowing 100% of the valuation amount and using the net surplus as deposit for the new property. As it will be an investment property initially you would want to offer the cash released from the Transfer as additional security until such time as you move into the new property when you have to reduce the borrowing amount secured against the PPOR loan. 

As you will not be moving out for the next couple of years i would question why you need to look at doing the transfer now ?

Why not wait until nearer the time.

From your figures i am figuring the 2 loans are cross collateralised so ideally you would want the existing IP loans as standalone securities and maybe time will aid this cause.

Your Broker should be able to assist in unravelling the securities in readiness.
 

Stamp Duty is a capital cost and added to the Cost Base when the property is sold.

Loan & borrowing costs can be claimed over a 5 year period or the lenght of the loan whichever is shorter.
They are proportionalised in the first year.

Jake remember in order to satisfy the FHOG conditions you only have to reside in the property for a 6 month continous period in the first 12 months of ownership and thereafter you are able to rent the place out.

Why not look at doing this. Take out a 95% interest only loan with 100% offset account and once the conditions of the FHOG are satisfied rent the property out. Utilise the balance of any deposit plus FHOG proceeds to go again and purchase a new IP.

Sorry why would the $100k be Tax Free? 

Hi David

I think you are confusing the situation so let us see if we can work through the issue together.

A lender will initially lend against the original purchase price / valuation (Whichever is the lower based on the fact that you are not paying a premium for having the DA approved) of the property you purchase.

Assuming once the property has been subdivided and you have a separate Title (Some lenders do not like multiple dwellings on the same Title) your lender will advance either stage progress payments to assist in the construction of the rear block subject to valuation of if you decide to cover the costs of the building they will agree on completion to increase the line of credit loan in line with the new valuation. 

Obviously if you have cash available and have no other non decuctible debt then you would be better off to use your own funds for construction (assuming you have no other use for them) rather than pay interest on the money albeit deductible.

If i have missed anything come back with further questions.