Good effort malquisce.

4 post and 4 mentions of the 21st century academy.

You wouldn't be Jamie McKintyre in disguise trying to peddle your product.

Love to know what JM could teach the world on Call Options.

Hi Mad

The formula your existing MB has put forward is simple debt reduction strategy and normal practice in advising clients.

My suggestion would be 2 fold:

1) Under the Mac Bank securitised facility the loans have to be X collateralised.  You could easily have a similar arrangement with a other lender and keep all of the loans separate.

2) The rate of interest charged by Mac Bank on this product is not very competitive and therefore by using an alternative lender you would find the interest saving could be diverted into your PPOR loan creating equity quicker.

3) Because the loan is a fully secutised loan despite i assume you apply on a full documentated basis it means that you have used up some of your borrowing capacity with the mortgage insurers. Personally i would never recommend a client take out a securised loan initially on a fully documentated basis as you may need the mortgage insurers down the track if you go for a lodoc / nodoc loan.

4) The Global limit is all well and good but for additional purchased incurs additional costs such as revaluations, new application fees etc etc. This again can be saved with other lenders meaning more money to go into your PPOR.

Where is the property located ?

You will not find any of the high street Banks offer you 90% LVR without LMI (85% is possible) however it is achievable in the market place.

In saying this those lenders that offer such a product charge either a higher rate of interest of a higher application fee.

Terry is correct about the double deduction available.

Hence if you are trade using a Company structure and are employee of that Company then you will be able to be both employer and employee.

Must one of the few Financial Planners who does not like the product !!

Hi Freedom

Firstly Happy New Year and a welcome to the forum. I hope you enjoyr time here.

With regards to your posting i would suggest that you look further a field than just Darwin.

Certainly your Solicitor would need to be able to practise in the State in which you intend to purchase your IP's and this could vary with each acquisition.

You Accountant similarly can be anywhere.

As for a good mortgage broker with the electonic age with us most application are lodged online and with the impact of emails I for one certainly find that i have clients all over Australia as well as the rest of the world.

Feel free to post some general information and I would be happy to assist further.

I am with Alistair i cannot believe it.

Never sign up for anything without reviewing all of the other options.

Hi Anthony

With all of the figures it is difficult to make a structured answer however just a couple of quick points:

1) You mention that you have taken out some money to fund the land purchase. I am unsure how this may have been done i.e redraw, remortgage or separate loan but the interest on the land funds will not be tax deductible.

2) I assume that the old PPOR is in fact in both names as joint tenants. With the varying income levels and marginal tax rates you are both on the deductions will be apportioned accordingly.

3) If you sell the property you are currenting constructing you may well incur GST and CGT on the sale price which may make you think twice.

Assuming your current PPOR is in an area that you consider will increase in both value and rent why not look to sell the property into a Trust structure borrowing the full amount of the current value and using the surplus funds to pay down your new PPOR loan.

Sure you may incur some stamp duty on the transfer but given the numbers you may well fund that the figures make the deal both palatable and you reduce the non tax deductible interest on your new home loan mortgage.