All depends on your perspective. You dont pay tax on capital growth unless you actually realise that profit.

I would rather have a positived geared property with capital growth as well.

The fact that that the current property is in Joint names will be the disqualifying factor as it was a PPOR for both of you (irrespective of your relationship).

All you would do is convert the existing loan to interest only as it will be an IP and you wish to maximise the deductible interest, remove the offset account and link it to the new PPOR loan.

If then you intend to purchase a further IP in your girlfriends name then might be an idea that you take out a separate line of credit on your new PPOR and Jointly you lend the funds to her for the deposit and acqusition costs.

Get you mortgage broker to make it a separate account so the interest can be easily identifyable.

Hi Julito

I think Terry link gives you the answer to that one.

With regards to the other question Alex raised there is nothing to stop you purchasing another property as an investment whilst your principal place of residence is being constructed. 

You will probably find accessing the available equity in the property during construction is a bit harder than normal until the dwelling has been completed so structuring the loan correctly is important.

Hi CE

If I and another party purchase a home together and it is the first for both of us. Regretfully not you will only receive it once.

Obviously if you intend to rent the property long term make sure you structure the loan correctly from day 1 to avoid any issues down the track. Ideally I would be taking out a 95% interest only loan linked to a 100% offset savings account and deposit all of your income into the offset account whilst you are living in the property as your main residence.

If down the track you decide to purchase another property and rent the original residence out then I would switch the offset account to the new loan.

This will maximise your interest savings and preserve the tax deductability of the original loan.

Too many clients get this wrong so make sure your Mortgage Broker is investment orientated.

Quiet easily

Minimum 6% ?  How do you know this to be a fact?  

They have sold over 100 of my developed properties over the last 14 years and we have always paid a minimum of 6%.

The prices for the TIC and the local agent were not the same. In many cases we presented the TIC with a copy of a full valuation report undertaken by a major firm who we used for the feasability study as well for our Bankers and subseqent clients for financing.

The TIC (and i have correspondance to verify this) used to decide on what price they would market the property for irrespective of the stated valuation.

There seems to be an underlying sense in these forums that groups such as TIC are somehow doing the wrong thing by buyers. The Qld Office of Fair Trading as well as ASIC didnt seem to agree with you after their findings into the operation of THE CLUB.

Alternatively look at selling the property into Trust at market value and borrow 100% of the valuation of the property.

Use the net proceeds after discharge of the existing mortgage as deposit together with your offset funds.

This way interest on 100% + of the market valuation becomes deductible.

You will incur Stamp Duty on the Transfer but depending on the numbers may still prove extremely worthwhile.

Hi IS

I imagine the fixed rate loan is principal & interest loan and probably cannot be varied whilst under the fixed rate.

All i would do is when the fixed rate expires switch the entire loan to an interest only loan and link an offset account to the variable portion (You might fix half the loan and keep half variable or a percentage). Reduce the non deductible interest on the loan whilst you are living there and build up your savings in the offset account.

As has already been pointed out you wont find any lender offer much more than crica 70% so will need to come up with the deposit from somewhere.

Mortgage Insurance is not available for Commercial deals so is not an issue.

Rates have fallen a little to what your Broker original quoted but to be honest as the number of Commercial lenders has also fallen dramatically the remaining lenders left in the market place can charge what they like for the business and do.

Stamp Duty would be payable on the transfer value.

No a Offset account does not hiner your borrowing capacity.

A lender will take the existing loan balance (or in fact the amount the loan could be redrawn upto) as your liability so if you had a loan of $100K and $50K in the offset account the liability will still be seen as $100K.