Not unless you use the $160K as deposit to be the business and borrow the balance.

Alternatively ask the vendor if he will offer terms on the purchase.

Hi Laurie

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

Doesnt sound to me like your Accountant is particularly switched on when it comes to property investment and wealth creation.

I am not aware of the location of the property in Brisbane but the value certainly isn't falling and i fail to see why you would sell it to buy a PPOR and then gear off the PPOR to buy more IP's.

If you wish to buy your own home and retain the IP then why would you not sell the IP to a Trust structure, borrow the full 100% of the market value and use the net realised amount to use as deposit for the PPOR.

This enables you to reduce the non deductible debt and increase your deductible debt.

Whilst stamp duty would be payable on the Transfer here in Qld it is certainly worth consideration.

If you are happy rent in the ACT then why not merely use the equity in the IP to boy more IP's and carry on renting.

Only consider would be the structure of the loan as from what i can work out your current loan appears to be an principal & interest loan which is probably not a prudent course of action.

If your  mortgage broker is experienced with investment property structures then he should be able to suggest a few ways to set up your new purchase. Drop us an email if you have any further questions.

Hi Dave

Wrong Hemisphere here we spell bargin with an "a".

Yes a lot of them especially now just understand.

It is easier to say NO than listen.

Hi Jas

Unfortunately Yes they can set the Terms and Conditions.

Have a look in the original letter of offer and see if there is a charge for switching to IO. If not then I would guess it is not an option under that Wizard loan.

Could well be that for the package of RMBS they were not accepting IO loans.

Regretfully the non Bank lenders are really feeling the pinch and therefore refinancing could certainly prove a cheaper option in the long run.

Hi Fujitsu

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

This day and age you dont have to sit down with your mortgage broker as you can deal through email and online and in fact many of my deals are done for clients througout Australia who i have never actually me.

With regards to brokers i guess it all depends on what you are after. If you want a discount job then sure go to someone like Refund but dont expect much. If you owned a new mercedez car would you take it to the dealer or some back street cash only garage.

What i am getting at is there is often more to the loan than merely a quick fix low interest style product. Most clients use a Broker as they are lokming for a longer term relationship and for someone to structure the loan correctly so that they can buy additional properties in the future whether they be IP's or another PPOR.

Personally i am not a great lover of the CBA/Colonial  deal as the MISA offset is not a real offset in the full terms of the word and think there are a couple of better options. 

HI SG

Yes Qu makes sense and Yes you can.
 
I would probably prefer to see the LOC funds drawn down into the offset account and the monthly interest come out from there.

Hi SG

No never get tired ask as many questions as you like.

Yes depending on who your lender is there would be no problem in a loan of that size.

SG

All about right this time

If you are suggesting turning the LOC (A) to a P&I loan linked to the offset could you explain your thinking here as i cannot see why i would do this. Don't think i would get a P& I loan for $25,000 – Yes i would suggest this. 

To my understanding $85000 is the amount that i can claim interest on i cannot increase this – Correct

Hi Again SG

Sorry i think i might have misread a earlier reply.

I was under the impression that the LOC for your personal purposes was not drawn at all. If this is not the case the convert this to a P & I loan and link the offset account to this loan and not your IO loan on the same property.

Make sure that the loan for personal purposes is totally separate to the loan for your shares.

Have ALL of your income going into the offset account liked to the separate P & I loan which you used for personal purposes.
Then each month have the interest for the other loans coming from the offset account.

If this is still not making sense shoot me a quick email and we can take it off forum.