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  • Profile photo of StoreybuilderStoreybuilder
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    October 17, 2016 - 7:51 pm

    I love it

    Profile photo of StoreybuilderStoreybuilder
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    October 16, 2016 - 3:42 pm

    Thanks again @terryw I didn’t realise I was taking myself into a dodgy scheme. Really grateful for the advice before I made any moves. What I think you’re saying if that its pretty suspicious to take out a new loan to pay off interest repayments and claim both the original and the new loans interest as a deduction (without a special change in circumstances affecting my income) and the ato may see it as a tax avoidance scheme. The only really clear way out I can see is to restructure the loans and keep one for the ip and the new one I think can be for any purpose. If I wanted to buy 10,000 bean bags or a new property it shouldn’t really matter so long as the purposes are clear, is that right?

    I consider myself to be of reasonable intelligence but some of this stuff is truly humbling. I read and read on this all night and found myself increasingly stuck and unclear but I think that is the nature of mixed purposes. I was of the understanding that I could redraw to do anything related to this property such as a renovation or even paying my bank fees out of it, but because it counts as a new loan it gets into some questionable areas and that’s not worth it.

    Did everyone follow that? I’m not even sure if that’s right but I feel like such a newbie. Missing my offset these days haha.

    • This reply was modified 8 years, 1 month ago by Profile photo of Storeybuilder Storeybuilder.
    Profile photo of StoreybuilderStoreybuilder
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    October 15, 2016 - 9:12 pm

    I’m not sure how that’s possible if it’s for the purpose of paying mortgage interest can you explain?

    Profile photo of StoreybuilderStoreybuilder
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    October 15, 2016 - 8:38 pm

    Thanks @terryw

    I have not. That is an interesting point. I plan to use money from the redraw, so would that appear as if I am borrowing money to do It? Would it be wiser just to take regular payments from the redraw, or does it make no difference?

    Re the lender, I want to break and refix by dropping the interest in advance then.

    Profile photo of StoreybuilderStoreybuilder
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    October 15, 2016 - 7:21 pm

    Thanks for all the help guys but I feel we are moving further away from the topic.

    I already did what you suggested Benny, but thanks for the advice anyway.

    What I’m really interested in is, are the break fees claimable? – Which it’s looking like they should be. Thanks @terryw

    My comment about the calculations was in response to @ethan

    The paying interest in advance serves some purposes.
    1. I should be able to get a discount
    2. I accidentally piled stacks of cash into my redraw as if it were an offset. This is normally a bad situation, but because I haven’t withdrawn any money from it, and I intend to use it for interest payments the cash will actually be able to be freed and eventually I will be clear of my mistake. This is one way to fix over paying into a redraw account.

    Profile photo of StoreybuilderStoreybuilder
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    October 15, 2016 - 1:58 am

    Found something compelling on the internet so it must be true

    https://www.finder.com.au/refinancing-home-loan-tax-deductions

    Profile photo of StoreybuilderStoreybuilder
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    October 15, 2016 - 1:50 am

    Thanks Pzardo,

    Good to know. Yes, renovation is always about looking out for over capitalising.

    Profile photo of StoreybuilderStoreybuilder
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    October 15, 2016 - 1:34 am

    Thanks everyone.

    Yes, ip staying ip. Fixed interest so easy to calculate. By easy I should say possible.

    Anyway thanks for all the replies, looks like I was on the right track.

    Profile photo of StoreybuilderStoreybuilder
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    July 28, 2016 - 7:50 pm

    How about you walk down grey st at 10 pm any night of the week, you’ll find out why really quickly.

    Profile photo of StoreybuilderStoreybuilder
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    July 26, 2016 - 11:20 pm

    Here’s something to begin with but I haven’t done any of it

    http://propertyupdate.com.au/how-to-get-started-in-property-development-article/

    Profile photo of StoreybuilderStoreybuilder
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    July 21, 2016 - 10:03 pm

    Thanks Benny,

    Yes all theoretical for now. Good to know. Thanks for the help everyone.

    Profile photo of StoreybuilderStoreybuilder
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    July 20, 2016 - 7:58 pm
    Jamie Moore wrote:

    I use coffee in the morning and pinot noir at night :-)
    Cheers
    Jamie

    Hahahha that’s the funniest supplement selection I’ve heard

    Profile photo of StoreybuilderStoreybuilder
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    July 20, 2016 - 7:44 pm

    Buffer account.

    That’s the answer to everything. SANF and everything.

    I work with peers earning at least $100,000 a year, and when the pay is a day late, which it actually is on time, they’re used to it a day early, anyway, when it’s late by their expectation, the clamber about and huff about bills and other expenses…

    Whatever, no matter your income, no buffer, you’re in the poo.

    Buffer can be an offset account (super good as it reduces interest). It could be in any form. 95% to 50% LVR is irrelevant, what are the multipliers, how many pays can you miss before it hurts? That’s the question, you gotta be able to tread water a while.

    Profile photo of StoreybuilderStoreybuilder
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    July 20, 2016 - 6:42 pm

    Thanks for the replies, but I fear this has become quite confusing to everyone.

    It’s not cross Coll because that’s not what I was asking for, what Jamie said makes a lot of sense. Thanks everyone.

    Profile photo of StoreybuilderStoreybuilder
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    July 17, 2016 - 10:30 pm

    Al this and more…

    http://www.thepropertycouch.com.au/ep-53-money-smarts-system/

    I have looked into it too, even if I could get an interest free $50,000 using your strategy that’s $100,000 of cards, and I couldn’t borrow for another house and in an ING saver I could earn $1500 a year in interest. I don’t think that’s worth it. The damage done wouldn’t be worth it. The best method I know is use the credit card with an offset on your PPOR first and then against any other non dudctible loan, then against the highest interest rated mortgage for an investment. That’ll save you megabucks, but that’s in the podcast.

    Good luck.

    Profile photo of StoreybuilderStoreybuilder
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    July 17, 2016 - 6:33 pm

    It would depend on your financial situation. Use a borrowing calculator with the limit of cards you intend. Let’s say you want $40,000. That’s probably $150,000 less you can borrow. Then you’d need to get a transfer card, and their lending criteria may be that they don’t like you having $40,000 limit already, and now you’d need another $40,000. You may get stuck with $40,000 high interest and no balance transfer available.

    Also, if less than 80% LVR you may need to show genuine savings, which if you’re using cards and not savings to start its may be difficult. I understand your thinking, but a lot of the time the straight forward approach is the best.

    Profile photo of StoreybuilderStoreybuilder
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    July 17, 2016 - 5:11 pm

    Perhaps you mean with cash advance.

    There’s a fundamental you’re probably missing.

    http://m.yourmortgage.com.au/article/how-to-get-your-credit-card-debt-under-control-79362.aspx

    You can’t keep borrowing on credit and get a loan, eventually the banks will refuse.

    Profile photo of StoreybuilderStoreybuilder
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    July 13, 2016 - 4:10 am

    He does have some good fun easy to understand you tube videos for beginners. Like many though I don’t know that I’d get the value out of any paid educational stuff if he even offers that. Sounds like he’s more targeted to making deals.

    Profile photo of StoreybuilderStoreybuilder
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    July 13, 2016 - 4:08 am

    Thanks Terry that’s great to know.

    Profile photo of StoreybuilderStoreybuilder
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    July 13, 2016 - 4:06 am

    Hey thanks everyone,

    These are really good answers I appreciate it. I never realised how much more expensive LMI becomes. I’ll aim for 88%_90%.

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