Im still a bit confused ? as your trowing random numbers around and i dont know how you calculated these numbers- ie where did the 13k come from?? and the 30k?

Valuation – $340 x 0.9 = $306,000
Loanwith CBA = $283k ( presuming no redraw)
Current loan with AMp = $306,000

So im guessing you got $283k straight refi + $23k = your new loan with AMP of $306,000 = 90% LVR

Not sure how you paid for the LMI? or where…

Regards
Michael

AMP dont allow LMI cap above 90%.

From your figures it sounds like you have some money in your redraw when you refinanced?

Regards
Michael

Could be a number of factors – you should have asked your accountant this question, but generally speaking;

1. Company- can’t pass on -ve gearing or any lost ( this may be the reason for the 70k buffer..- are you making a lost right now?)
2. No land tax threshold
3. No CGT discounting.
4. The company 29/30% tax rate – i have a feeling this is the reason for the 70k buffer, making 39k in rent is not a lot but depending on how much you make on your personal tax return and what tax bracket your on, company /trust structure MAY work better for higher rent.

Regards
Michael

Also one more thing you may want to discuses with your financial planner ( if she/he haven’t told you yet) is to change your Superannuation account to a Account based pension account. It means you start to draw on your Superannuation on a regular basis…but

1. You no longer pay the 15% tax
2. You no longer pay the 10% capital gain tax

And if you didn’t want to draw on the super- you could do a round robin and add the funds back into the Superannuation.

P.s Im not YET a registered financial planner- so please seek your own professional advice.

Regards
Michael

Terryw wrote:

When I was younger I went to as many free seminars as I could afford to . I think it is a good way to learn. I still do go to free seminars whenever I can – went to a recent one by the ATO on SMSFs (they didn't try to sell me anything which was strange).

I love the ATO talks

Not sure what your asking???

It sounds like you bought the place already with LMI? and now you want a refund?????

Regards
Michael

It will come down to serviceability… if you can service the extra increase and loan.

Regards
Michael

Personally i would advise against new purchase purely for the $8k benefit..

1. You can’t see what your buying- being your first buy this can be a costly mistake
2. Builders tend to add a larger profit margin on top considering there is a grant as well
3. 70% of new build i have seen do not meet customers expectation …especially investors- ok for most owners occupiers.
4. buying it as of today’s price and hoping the market follows…hope is not a strategy; it’s a gamble
5. Off the plan, construction and new purchase from an investment point of view should be for exp investors who has cash buffer to back them up.
6. Change of financial situation half way.

It’s great for owner occupier as they know what they want- without caring too much about return or rental yield + willing to spend a bit more on quality finish and upgrades.

So really from a investors point of view ( or should i say from my personal exp) you benefit more from existing home because
1. You can claim a higher % of the benefit right from the word go
2. Easier to compare
3. Easier to research
4. Return is instant…dont need to wait 1-2 years before you see your 10% deposit working for you.

P.s 8k is not a lot of money…you can get this back quite quickly from rental….or if you buy a existing property at a cheaper price.

Just my 2 cent. My strategy and view point may not suit all investors.

Regards
Michael

5 star cannex award system is not customer service driven or how “safe is their rates and company” …it’s purely based on HOW CHEAP ARE THEY COMPARED TO XXXX

wow 6.22%- ok you get an award

+ you know these company AFTER they win the award pay Cannex and another award “system” magazine/website a advertising fee to advertise their banner + if they want to be featured in their magazines etc…

Unfortunately in the financial lending industry- every bank is different and there are a lot of variables and factors to consider.
So most award system really only compares the Comparison rate.

if you want to compare NOT just the rate; but the banks reputation, policy, features, suitability to your personal circumstances you will have to do your own research or go to a broker you can trust ( one that won’t recommend based on $$ commission received )

P.s option 3 is pointless….your paying weekly rent to share a place with someone – you might a well go with option 2 and buy the place ( mortgaged) and share it that way; The advantage being;

1. You gain potential capital gain
2. Dont have to worry about moving and land lord
3. Tax benefit
4. Rent increase is controlled by you.
5. Sub-leasing is controlled by you.

Regards
Michael