Yes you would be borrowing $500k in that instance.

Yes

That means you are borrowing the deposit

There are hundreds of ways to improve serviceability. You should speak to a broker aboutt specific things that might work for you.

One simple one is to go PI on all loans and extend back to 30 year terms.

the less you borrow the easier it will be, but it depends on where you are getting the deposit money from

Not really. They will have a complex calculator which takes into account a percentage of your salary income and generally 70% to 80% of the rent.

These days I don’t think any will take into account depreciation, but some will take into account interest being deductible.

You coudn’t keep borrowing to buy similar properties because you…[Read more]

It is really irrelevant whether a property is cash flow positive or negative for finance. Every bit of income helps, but the risk is still the same for the lender and serviceability must be passed.

For a property not to affect serviceability, in theory, it would need to have about a 11% yield. But most lenders will cap yields for…[Read more]

All the other legal issues. Being a director is potentially dangerous and burdensome, but not being a director means loss of control.

Each lender has a different policy to other lenders so some will be good for what you are after others will not be good.

A trust is not a separate legal entity, but a company is. So the debts of…[Read more]

All the other legal issues. Being a director is potentially dangerous and burdensome, but not being a director means loss of control.

Each lender has a different policy to other lenders so some will be good for what you are after others will not be good.

A trust is not a separate legal entity, but a company is. So the debts of…[Read more]

see

https://www.propertyinvesting.com/topic/5076532-best-owner-structure-to-minimize-land-tax-2/

You need to seek credit advice from a broker. Was the reason that you failed serviceability or that you were too rent reliant?

As a guide you could generally borrow 7x your annual pretax income – very rough.

this will all depend on where the land will be as land tax is governed by state legislation. Something you should seek legal advice on.

A bare trust won’t really help though.

Yes a handful of lenders offer fixed with offset. Heritage and Adelaide are 2

A LOC is generally at call and the limit can be cancelled.

A term loan is generally for 30 years. There are differences in serviceability assessements too.

One could work as well as the other, but one could also be better than the other. This is something you need credit advice on as it will different from lender to lender. I haven’t written a…[Read more]

The rates on LOCs are generally very high and the term is generally at call.

You can use a term loan just like a LOC.

An alternative might be to use the LOC and then convert it to a term loan once fully used.

Get some tax advice

With debt recycling you pay down debt and then reborrow again, usually using the same loan.

Yes you can only claim interest on money borrowed to acquire, or improve, an income producing asset.

I don’t know why all these spammers are constantly making silly posts on this forum. Can they be blocked somehow?

No because there will be no interest.

If a loan is fully offset there will be no interest to pay, but if you remove the offset the interest will start again and this interest could be deductible if the loan related to the purchase of that property and that property then becomes available for rent.

No because there will be no interest.

If a loan is fully offset there will be no interest to pay, but if you remove the offset the interest will start again and this interest could be deductible if the loan related to the purchase of that property and that property then becomes available for rent.

ha ha Richard was right. They were being a bit misleading and deceptive when they said that. perhaps a refinance is worth considering