Hi Pirate

This might help a little

$450k x 9% / 12 = $3375 which is the interest component each month (ignores the fact that some months are not equal to others)

Try this link to work out the principal (saves me typing the formula long hand)
http://www1.infochoice.com.au/distributions/10379/Amortisation.asp

P & I per month = $3620.80

Difference between the 2 is the principal reduction each month being $245.80

Course GOM silly me.

I requested the info pack be sent to me over a week ago and as yet hasnt arrived.

Maybe it takes 7 days in the mail to travel the 9 KM's from the City to where i am in the Western Suburbs.

Hi Joanne

Sorry can you tell me how when the property is costing you a $130  / week you are intending to use it as a tool to pay off your mortgage.

Call me slightly suspicious but are we getting an steady increase of these types of posts.

Perhaps the high pressure property investment sales to unsuspecting buyers is a drying up market…… one can only hope so.

Hi Peter

Unless it is by way of a personal loan and then you have a limit of around $20K unsecured you wont find any lender touch it.

Problem they have is there is no security as you do not have Title to the property.

Hi  Kuade

Firstly from what you have set out a clear case of the securities being cross collateralised and not an ideal situation (for you anyway it is just what Suncorp will want to see) in going forward.

Secondly remember that using a redraw is not an ideal tool and you would be better off to have a totally separate loan which you use as deposit and cover your acuisition costs.

Thirdly I am not one for having all my eggs in the same basket and believe you could probably do better. This will certainly be the case if you ever decide that you want to increase the LVR to > 80% to keep going with your investment goals as Suncorp will charge LMI on the total loan exposure due to the way in which the loan have been set up.

Email me if you want an alternative on your structuring.

Just coming in late to the post but cant let advice like this go by unchallenged.

If the 1st place you buy is an IP you will loose FHOG and SD benefits for any purchase of a PPOR later on.

This is totally incorrect. If you purchase an IP and have not previously purchased a PPOR then you will still be able to claim the FHOG when you do purchase a PPOR. Certainly you may loose the SD concessions as a FTB but you WILL NOT LOOSE the $7000 FHOG.

If you purchase the 1st place as a PPOR and then convert to a IP you wont be able to benefit from the interest you pay on the loan as a tax deduction, unless you go through the expensive process of setting up trusts and then paying SD and transfer fees.

Again sorry but this is clearly incorrect again. If you purchase the PPOR as a IO loan and then down the track decide to rent out the property you will be able to claim the interest on the loan as a decuction. You will not have to set up a Trust as the property can be held in your own name and will not incur additional SD or transfer fees.

Moral of the story is by all means read the well being posts but do your DD or talk to a Professional as much of the information kindly provided is incorrect.

imuli, Yes you always link the offset account to the non deductible debt.

Only if you have no NDD would i link an offset account to an investment loan.

Hi Aim

Again hate to keep the bad news coming.

Mac Bank have pulled up stumps in the lending market so wont be open to another IP.

This sort of situation is exactly one of the many issues with X collateralising the loans together.
I am suprised the Mac Bank deal was ever cheaper than what you could negotiate with Anz and at least there you could split the loans to have them each standing on their own and not supporting each other. With Mac that is not a choice or option.

Regretfully doubt if the Aussie Broker has any idea on loan structuring probably doesnt even have a IP portfolio himself so will look at you blankly when you mention it.

A Discretionary Family Trust would give you numerous options when it comes to buying + cash flow properties.

Hi Stay C

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

Whoever has given you the information above has unfortunately misled you and as suggested will not achieve want you require.
If you redraw the funds on your current PPOR to fund the next property the interest will not be tax deductible.

In saying this there are a couple of options as i was saying to a client earlier today in order to achieve the desired result however they will come with some cost (normally additional stamp duty).

Depending on the numbers it could still be very viable although additional information would be required in order to provide  a structured answer.