I think it is not only a matter of lodoc rates moving up but rates on full doc loans moving north over the next few weeks.

Have spent all day at an Anz Bank Golf Day i was told by their State Manager that they are really looking hard at the viability of 0.7-0.8% discounts they offer under the Pro-packs as these loans are just not profitable. This is the 2nd time i have heard that this week from major lenders so i think you will find that rates gernally may rise irrespective of the RBA rate.

The 90 swap rate was higher than than the cash rate for the first time since 1986 earlier this week and that has to tell you something about the direction of rates short term.

Must admit i disagree with a couple of your points.

6) At settlement buyer pays stamp duty.

7) Stamp duty is only payable when title is transferred i.e. at the end and if contract is broken then no transfer of title and hence no stamp duty.

Unless this is different in Victoria which i doubt the Buyer pays the stamp duty on or before the date of possession rather than the date of settlement.

Lou

Sorry it is not a straight forward answer.

1) You would transfer the security when you knew you were moving out so the funds raised could be used to finance a new property. Altenatively you would invest this in an 100% offset account whilst you were waiting for settlement.
2) Yes stamp duty is payable charged according to the State rate. There is no capital gain implications as the property was your original PPOR.
3) Yes you can sell the property at any price subject to being able to obtain a letterhead valuation verifying your sale price.

There are a couple of other considerations but given the loan amount and your tax bracket it could be well well worth it.

Jason

If you wished to use the $50K for a deposit on an IP then you would be better off paying down the capital on the loan and then split the loan into a separate account and borrowing $50K for the deposit or to defray the purchase price.

Dont use the redraw as the original purpose of the funds will not satisfy the ATO.

All in the planing and structuring.

Yes it is possible to capitalise the interest with certain lenders in certain circumstances but personally i would not do that where the loan was used for personal circumstances.

I think one problem is every lender is going to tell you they are the best.

Each has their own little foibles with regards to serviceability some of which they publish others are more of a credit issue and therefore not marketed openly.

Unless you check out 30 or so lenders I think you will find it difficult to get a balanced answer.

Most will have no knowledge on loan structuring anyway so thats not an issue.

Sorry eternit we dont go down that far.

I have recently purchased an Agency with a large rent roll based in Clayfield so most of our properties are in and around the City and City North.

Hi Nigel

Where abouts are you. Might be able to refer you to someone.

It is funny i hear all day long about the CBA. They want to help you when they feel there is something in the deal for them and then drop you like a stone when you need them most.

As has already been mentioned a little more information would be needed to provide a suitable suggestion.

Bear in mind that there is a big difference between what one lender will allow when it comes to serviceability and the next.

No way out of it.

You incur the duty and when you sell it to them under the instalment contract so do they.
Difference is that they may qualify for a reduction in the duty payable under the First Home Buyer concessions.
They may also qualify for the $7000 – $10,000 FHOG dependant in which State the property is located.