Hi Vincent

Firstly congratulations on seeing the light and making the move to sunny Qld.

One of the downsides with the way in which you have the loans structured is that the funds you use to borrow for your new PPOR here in Brisbane will not be tax deductible even if you redraw down the existing equity you have on the HP property.

Ideally you want to have the maximum loan used to purchase the investment property (as the interest is Tax deductible) and the minimum amount used to purchase your PPOR (as the interest is not Tax deductible).

One way around it would be to consider selling the HP property into a Trust structure and using the suplus funds as deposit on your Qld PPOR.

Obviously need to make sure you can service all debts. Let us know if you need any further information.

This means that every

Vstar

I think you will find Steve has clarified this point on many an ocassion subsequently.

Regretfully it just doesnt work like that.

Terry it is exactly the same.

Sorry John but i think you have mentioned your new product somewhere in 5 of your opening 8 posts.

Post, why not look at adding a + geared property such as a wrap to your portfolio which should give you a nice amount of extra cash each month and offset the shortfall. 

Hi Wayne

I have sent you an email to answer your question.

DD – Stop right there.

Dont Transfer the property into a Family Trust controlled by someone else.

There are many considerations.

You will need to ensure that you are the Trustee and also from what you have mentioned the current Trust arrangment will be a Discretionary Family Trust which may not be suitable in this case if you are looking at claiming the negative gearing loss.

Shoot me an email with further information and I would be happy to make some suggestions.

Hi Pamela

I totally agree with Marc. Ask questions here and we can all offer assistance and advice.

Obviously if it is personal information you are disclosing then take it off the main board through a PM or email. 

Hi Newgen

Welcome to the forum.

You have a fair amount of equity in the PPOR and if you borrow the equivalent amount on a new home the interest will not be Tax deductible.

One consideration would be to look at selling you current PPOR into Trust and borrowing the full value of the home giving you approximately $130K deposit to put down on your new PPOR. Whilst Stamp Duty maybe payable it is certainly worth doing the calculation given your marginal Tax bracket.

This effectively turns over $10000 of interest per year into Tax deductible debt rather than leaving it on your PPOR as a non tax deductible expense.

In addition, your current PPOR is P & I loan which i certainly not recommended if you have other non tax deductible debt which you will.

Finally, given the ocverall LVR you might want to consider an altenative lender to SGB as the LMI premiums with SGB on a loan exposure over $1M will be XXX ee.

Happy to provide any additional information you may require.

Hi Wayneo

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

It is something we do for clients regularly so can certainy speak with experience.

Personally i would look at 2 separate entities holding the properties you intend to buy, reno and sell on in a different structure to those that you are looking to retain long term.

Just make sure you loans are set up correctly and try avodi cross collaterlaising the securities as that will cause you problems down the track if you want to retain equity in a security that has sold.

Hi Vital

The fact that the property will eventually be you PPOR has no bearing on the fact whilst it is treated as investment property you are able to claim the appropriate Tax deductions on it in relation to the rent etc.

Hi Jodie

Nodoc and Lodoc abbreviations refer to lending definations when it comes to income evidence.

Nodoc = No documentary evidence of income required. You would merely sign a statement confirming you can afford to service the loan and subject to everything else you are away.

Lodoc = Limited Documentary Evidence required. Usually the borrower is required to state their income and this is what the lender will take rather for the loan assessment rather than ask for normal evidence of income such as payslips or Tax returns.