Forum Replies Created
Few updates:
Our offer of $445K got accepted. I went back to NAB and clarified the loan situation. We don't have to sell a property and we are able to service loan up to $570K. NAB ordered a valuation of current PPOR and came back at 430K ( driveby ). Another lender did a valuation today and went in, came back at 470K. With the top up for the 2 IPs with NAB and 80% LVR for refi of PPOR and for new purchase, there is enough to cover all purchase costs.
In terms of tax deductibility, what are your thoughts on the following:
We would like to rent out new purchase for 6 months ( a possible tenant already ) then turn to PPOR once we have more money saved for renos before we move in and continue living in current PPOR pay minimum P+I and take out redraw available ( 10 K to do kitchen Reno, hopefully help with depreciable value )
My questions are:
1. Would the refi amount of 80% of 470 K for the PPOR ( 376K ) now fully deductible by the time PPOR turns to IP in 6 months time as the excess of 56K from the original amount of ( 250K +68K) has now been used to purchase an IP originally but will become a PPOR?
2. We also have about 27K in offset account attached to current PPOR. We plan to move this to another account once PPOR turns to IP. Will this affect deductibility in any way?
Thanks again for any help from forumers out there!
Free valuations ordered this week came up at the following.
PPOR- 450K
IP1- 350K
IP 2- 420K
… and yes all loans are standalone. Thanks again.
Checking the loan documents now, we paid LMI on IP 2 purchased in 2010. Thanks again.
All loans are with NAB choice package at variable of 5.68 % with the discount. We went back to them, couple of weeks ago and would not lend without selling one of the properties. Refinancing at 4.99 % hopefully for positive gearing. IP#2 at 400 per week and current PPOR modest estimate of 430 per week. IP# 1 is renting at 355 per week. We don't have enough cash to fund new purchase ( which we think is a good buy, land value of 139K + 389K build cost 4 years ago and now for sale urgently at 450 K) . I am on 90K income and hubby on 70K income per year. We have car loans but values of the cars is more than the loans. Thanks again for any insights.
Thanks also Jamie. Definitely a starting point of my discussion with my accountant before I proceed with this.
Thanks a lot Shahin. I am looking at Citibank at the moment for their 85% LVR with no LMI for the new PPOR and possibly Homeside for the 2 IPs and the current PPOR soon to be IP. Any suggestions for lenders? Thanks again.
Thanks Richard! Your response made it all clear to me now. I have another broker who suggested a standalone for the IP and doing exactly what you said. Although the 1st broker has invested so much time on us already and I don’t know what to tell her now, I think I’ll go for the other broker who I think is giving us a better deal. I’m just gonna send her a nice bottle of wine for her efforts! Thanks also for the residex reports you sent me for the melton and csprings properties. Do you also do business in melbourne?
Cheers!
