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.

wan0151 wrote:

Is it possible to have an offset account linked to a fixed interest only investment loan?

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

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

Tommy15 wrote:

then i cannot re loan that and get tax benefits later on when i re buy can i ?

No because there will be no interest.

Tommy15 wrote:

I got a offset account and put full amount of loan into it but still pay principle….. basically i dont want to pay any $$ to bank in the time between buying next place…….. is there a way to do it ?

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.

It wouldn’t make sense to use a LOC. The existing loan could be utlised and tax deductibility achieved if done right

Thanks Colin

I am not an accountant but since only lawyers can set up trusts that doesn’t matter! I don’t do tax returns though.

Colin Rice wrote:

Put property in a discretionary trust, live there and sign a lease and pay rent to the trust, run a business from home and the rent becomes a deductible business expense as a bonus. Seek advice from an accountant first, as always.

This is something I usually suggest people avoid doing. Loss on the main residence exemption, land tax in many states – such as NSW where it would cost  $8,000 per year for land content valued at $500,000.

It would be better, usually, to own the main residence and rent it out, using the 6 year rule, and rent somewhere yourself where you could sublease part of the property to the company operating the business. You keep the full main residence exemption, for up to 6 years, and still get a deduction for some of the rent.

Generally a full application again as servicing is more stringent.

They will just be auctioned through various agents. you want find a website listing sheriff sales I’m sure. You also are unlikely to find a bargain.

Yes

If your living expenses are under the HEM index they will

a) not believe you, and

b) bump it up