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  • Profile photo of sundipbsundipb
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    @sundipb
    Join Date: 2009
    Post Count: 13
    August 16, 2016 - 12:18 pm

    Thanks Collin for the reply.. The 2 properties are not cross collaterlised as i bought the IP property from a inheritance from a family trust couple of years ago.

    So will it be as easy as that?

    1. Change PPOR loan from P&I to IO only.
    2. Delink offset from PPOR to new PPOR.
    3. Do i start making P&I payments in the PPOR or keep that as IO as well?

    thanks
    Sundip

    Profile photo of sundipbsundipb
    Participant
    @sundipb
    Join Date: 2009
    Post Count: 13
    August 16, 2016 - 11:51 am

    thanks collin for the reply.
    No i haven’t been using the redraw facility, i have been putting all my extra cash in the PPOR offset account. I have only been making min payments for the PPOR.

    i only 4 accounts.
    1. PPOR everyday account (offset account)
    2. PPOR loan account
    3. IP loan account
    4. Credit Card account

    I have got the NAB choice package home loan account which is $395 per year.

    Profile photo of sundipbsundipb
    Participant
    @sundipb
    Join Date: 2009
    Post Count: 13
    August 16, 2016 - 11:42 am

    Thanks for the reply Collin.

    This is my structure at the moment:

    1. PPOR Loan = 360K
    2. PPOR Offset Account = 100+K < – this is where all my salary & IP rental income & additional cash goes into.
    3 Repayments for PPOR = P & I
    4. Repayments for IP = IO
    5. IP Loan: 500K < – Rent for IP goes into 2. (i.e in the PPOR offset account)

    Hope this helps.

    Profile photo of sundipbsundipb
    Participant
    @sundipb
    Join Date: 2009
    Post Count: 13
    August 16, 2016 - 10:40 am

    Thanks for the reply benny. I forgot to mention i also have a IP property.

    Lets make a stew out of this topic (yummy)

    1. PPOR = 25K special Levy due in dec 2016
    2. 100K in offset account
    3. IP property

    How do i go about switching my IP – > PPOR and my PPOR – > IP ??

    What are the tax complications with this? And how will this affect my tax deductions???

    Profile photo of sundipbsundipb
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    @sundipb
    Join Date: 2009
    Post Count: 13
    August 15, 2016 - 3:27 pm

    Thanks for the information guys.. I have had the property for nearly 9 years and have been aware of the problem, however we didn’t expect the bill to be 3 million to fix the building. This is water leaking issues, painting..etc etc

    How i’m just wondering how do you go about switching your PPOR to a IP? Can i re-finance my PPOR property and buy another property? I have got 100K in a offset account.

    I just want to know if the 25K repair cost will be deductible after i make it a IP property? with regards to timing.

    Profile photo of sundipbsundipb
    Participant
    @sundipb
    Join Date: 2009
    Post Count: 13
    September 23, 2014 - 12:28 pm

    Thanks for the tips guys however i’m still in a confused state, sorry for the late reply been nearly 3 months.

    however recently apartment sold in my building same as mine for 450K. My situation as follows:
    Apartment valued at 450K
    Loan Amount 192K & Available Balance 97K (paid extra)
    I have an extra 35K coming to be from my parents as gift.

    Our plans are is to live this apartment for another 5 years, been old sckool as i am my parents always said to pay off all your loans. So should i sink the extra 35K i get as a gift into my PPOR loan which will bring my available balance to 132K. Since we wont moving from our PPOR for some time is it than better to borrow $$$ against my PPOR since the equity amount will be 318K. Down the line after 5 years we are not quite sure with this PPOR will become IP or Sell it.
    Oh have a paid to much off this PPOR to become a positively geared property and there is no tax benefit from it now.

Viewing 6 posts - 1 through 6 (of 6 total)