Jason

Sure subject to income you could go back to both of your current lenders and ask them to look at taking the loan upto 90% LVR and then use the funds elsewhere.

Still a few lenders who will 95% lvr so all depends on the purchase price whether you would have sufficient.

Regretfully Yes you are dreaming.

Why dont you use some of the equity in the 2 properties.  100K would go a long way to providing a deposit or two.

Love the use of caps.

Sorry Steve and you are who ?

The open door policy is not quiet true.

I have clients who signed a purchase contract subject to finance (which i managed to get declined as the property was $55,000 over priced according to the local agent and Bank valuer.) and the following day phoned PF to tell them they would not be going ahead.

The PF recommended lawyer charged them $800 from the $1000 deposit when he hadnt even open a file and they were charged half of their once for a lifetime PF fee for some fancy graphs and paperwork.

Thankfully they have subsequently purchased through me 2 under valued properties which we have already had revalued at a higher valuation in 3 months and hasnt cost them a penny.

Just wondered why you feel the constant need to push their services. Is business getting tough ?

Bank West will not do a lodoc construction deal in the manner which is required by the propertylearning.

Business loans are not as easily available as they were and will depend on the business itself.

Many lenders now require property security unless the property is a franchise.

Horses for course.

Racheal Do you qualify for the First Home Owners Grant ?

Terry is right pay down the non deductible debt first.

If however they do not have any personal debt and they dont need the Term Deposit interest to live on then why wouldn't they place the Term Deposit funds into an offset account.

The effective rate of interest will be a lot higher than they are currently receiving and they still have immediate access to their money.

Unfortunately CBA do not offer a fully transactional offset account whatever they tell you so would need to consider going elsewhere.

Depending on the current rate of interest the change could benefit in more than one way.

Hi Deano

Firstly where possible do not use your own cash as a deposit whilst you still have a non deductible home loan.

You are better off to borrow the money so that the interest is tax deductible and use any surplus cash to reduce your non deductible debt. There are a couple of ways to do this.

Utilise where possible the equity in your property to fund deposits and acquisition costs and then have each new investment loan standalone on the purchased security.

You are able (with certain conditions) to borrow upto 100% of the investment property purchase price and therefore would only need to cover your purchase costs such as stamp duty, mortgage insurance etc etc.

There are a couple of other strategies could can also employ such as Vendor financing however obviously the seller may not be prepared to offer such a facility.

Structuring it correctly from day 1 will help you move forward quickly and with less problems in the next deal.

Dan has the nail on the head.

Regretfully no deductible interest by using the security and raising funds hence the suggestion of selling the property into Trust.

Agree with Terry keep things separate and simple.

There is one Financial Planning franchise doing the rounds that recommend a big line of credit against of your securities and all you do is simple increase the limit once the properties rise in valuation.

This is fraught with issues and certainly could not recommended by me.