Forum Replies Created
Got it.
Thanks.
Thanks Marc.
So, there's no benefit (tax wise) in transferring equity, or using existing equity as a deposit?
I probably need to spend some time with a loan broker to get my head around this aspect of borrowing (I think I may have oversimplified it).
Thanks Richard ..
So the unit trust (once set up) applies for the finance? Or do both partners apply for separate finance for their share in the property?Yeah – I was thinking that selling made the most sense. I wasn’t sure if there were some magic that I had overlooked.
Having an IP more or less positively geared (still claiming depreciation) is OK at the moment – as I’m in the 3rd year of a new business (so haven’t needed to negatively gear) – I’m hoping that will change in the coming year, although it will be tight with moving to the country at the same time.
I’m not sure how much I’ll be penalised by the bank (B o Melbourne/Westpac) for selling during a fixed term – would it make any difference if I sold and transferred the loan to the PPOR? (It’s an investment loan)
Thanks again for all the great advice – I’m taking it all on board.
I’m currently renting in Sydney (Bondi Junction) – and of course paying exorbitant rent.
I don’t have a PPOR currently.
The rationale for living in the country is pretty much the incredible value comparison with Sydney (East), which is ridiculously expensive (unless you’re a merchant banker, Jamie Packer or an ex-premier – god knows how others can afford it).
Thanks Simon,
It’s definitely the long term option (PPOR).
Stupid question time:
Could you explain this with a little more detail“I would draw the IP loan up to provide a 20% deposit plus costs for the PPOR.”
I’m pretty ignorant of the vernacular, and this is where I get confused.
Sorry (o_+)
Thanks Richard (very quick around here!),
The land package is more than he can afford – and I’ve suggested looking into sub-division to enable myself (and maybe one other to then invest, plus share the cost of the division) – so separate titles.
The land is 20 minutes out of town – so don’t believe there would be any planning issues (if that’s what you mean).
The englobo aspect is a concern – I assume that any sub-division would need to take place before looking at borrowing? Or do you think a unit trust setup initially – then subdivide and transfer title would be better?
We really want to live on the property (albeit far enough away from each other’s kids) – so the extent of any ‘development’ would mearly be for additional selling down the track (to maybe fund other ventures).
Anyway – I’ll followup on your suggestions with the relevant people.
