rickgm83 replied to the topic Variable or Fixed in the forum Finance 12 years ago
Has anyone ever beaten the banks going fixed?
From my understanding if you can fix your interest rate at 5% for the next 3 years (given the current variable rates) the banks economists are predicting RBA rates will fall further over the next 3 years.
rickgm83 replied to the topic First IP loan structure in the forum Finance 12 years, 1 month ago
Bit more clearer now, i think i was just trying to over complicate things.
I would have a better tax advantage if i stayed in my current house as it has the lesser debt but i want to move unfortunately.
I think how Jamie and the others have explained is the only option.
Thanks guys.
rickgm83 replied to the topic First IP loan structure in the forum Finance 12 years, 1 month ago
Ok thanks,
This example was keeping both propertys/ loans seperate but might look into seperating the refinanced $50k aswell.The other option I was thinking is having the seperate loans for each house but using the first house as collateral on the second.
Wouldn't this mean the first loan stays at $218k but it has a $50k collateral written…[Read more]rickgm83 replied to the topic First IP loan structure in the forum Finance 12 years, 1 month ago
So if the loan on the first property that will now be rented is $268k ($218k + $50k for purchase of second property)
I can only claim interest paid calculated on $218k?
Is there a better way to structure the loans? Use first house as security against the second (PPOR) and keep my original first loan at $218k?
rickgm83 replied to the topic First IP loan structure in the forum Finance 12 years, 1 month ago
I've had a valuation done and a lender has calculated the equity.
Valuation $315k
Owe $218k