Narelle

Personally in todays market where properties are taking longer to sell I would go for them with vigour.

Yes i guess it can be done however seems like a very complicated way of buying a property to me.

There will be lots of stamp duty and CGT to be paid all round.

I am assuming you are referring to a Unit or HDT rather than DFT.

The simple answer is NO when the property is already owned by you personally.

I think your understanding of how a loan in regards to a Trust works is mistaken as you cannot merely change the name on the loan into Trust unless the property is sold to the Trust which may trigger both a capital gain and stamp duty.

Careful planning with your mortgage broker will alleviate this problem in the future.

I must be a bit slow.

Why would you subdivide into 400 / 500 metres first rather than just straight into 450 / 450.
If you mean if you buy it as 400 / 500 first up and want to change then YES you can subject to the local authority requirements.

Hi Kenzel

Assuming you could find a lender to agree to allow a 100% refinance then Yes you could go upto $300K and draw out the available equity.

In saying this remember that the interest charged on the loan would not be tax deductible unless the funds drawn down where used to generate an income or for investment.

You would want to make sure that the loan was structured correctly to maximise your tax deductions and reduce the interest charged on any non deductible portion.

Syphanx

I assume the loan a small unsecured loan with undoubtedly a high rate of interest.

With your funds you are probably only getting around 5-6% per annum for such a small amount invested.
 
Payout the loan as quick as you can and save yourself some interest.

Obviously usual caveats apply if the interest is tax deductible or some other factor you havent mentioned. 

Quicker you can rid yoruself of non deductible debt you can start saving for that next IP.

Personally I would not sell an appreciating asset (Albeit not increasing at the moment).

Have you considered switching the loan to an interest only loan and renting the property out.

You would be able to claim not only the interest / rent shortfall as a deductible expense but dependant on the age of the building would also be able to claim an amount for Depreciation and Building Write off as well as any costs associated with the mortgage establishment, conveyancing and mortgage stamp duty etc (over a period of 5 years / term of the loan whichever is longer).

With knowing the approximate figures you may find that you are financially a lot better off in having someone else share some of your shortfall.

Shoot me an email and would be happy to assist you.

A couple of points to bear in mind:

1) With a commercial style loan you will not get more than 75-80% LVR on the sort of security you are looking at.
2) Depending on your other income and expenses you will struggling to show serviceability on $65K per anum.
3) Going lodoc / nodoc is an option if your accounts are not ready when you make the application.
4) With any form of adverse credit showing you can expect to pay a higher premium rate for any loan.
5) Putting the loan in your partners name (maybe the only solution given your potential CRAA) will put more strain on your serviceability.

In

POS

·         No account monthly keeping fees  –·         Yes this can be achieved. ·         Premier Advantage Package with .8% off the loans ·         Unless the amount is > $1M + unlikely in the present climate. ·         100% offset account on my Loans against my PPOR & IP is this okay with the IP? ·         Yes but you wouldn’t have 1 on each account·         No Loans crossed secured – all separate loans.·         With some lenders it is a requirement under the package but YES we can get around that.·         What is the right structure to set up for future purchases. ·         Lengthy answer and would vary from client to client·         Should I pay off my Home loan first then sell to the Trust to draw out 100% of the equity? ·         No simple answer to this one but normally NO. Depends on individual circumstances.

No 1 client is the same so more information would be required. Remember the cheapest rate of interest is not necessarily the best product for an active investor.