If CBA won’t play ball, you could probably move to another lender without the need for a guarrantor.

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Stamp duty on the land is not deductible. I beleive LMI, and stamp duty on the mortgage and stamp duty on the LMI premium are all considered borrowing costs and should be deductible over the term of the loan or 5 years, whichever is shorter.

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If they are both investment loans, then probably won’t make any difference. You may be able to save some small fees, but what would the cost be to do this? any reduction in rates?

Your proeprties would then be cross securitised. It would be better to keep them separate in my opinion.

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Probably a 100% offset account would be better as there are no tax issues when withdrawing money. If you use a LOC, any withdrawals are considered new borrowiings and the interest may not be claimable.

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Hi

Briefly,
You would want your existing home loan to be IO as you would want to put all spare cash into paying down your new loan.

The old place can still be counted as your main residence for up to 6 years, but you can only count one place as your main residence. So if you count the old one, and sell it will be CGT free, but if you were later to sell the new one, it may be liable for CGT even if you have lived in it the whole time. Better speak to a good accountant about this.

If you are going to sell, then the agents will charge 2-3%, plus you will have legals, govt charges and bank exit fees. Then if you were to buy another investment property to replace this, you will have stamp duty again as well as legals, loan fees, and govt charges.

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It would also depend on your rents and other incomes. When I started investing I obtained 6 x 95% loans for investment properties within 6 months before the bank got a bit worried. Then I just went to a different bank.

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Those fees are ridiculous!

I want to become a property manager in WA!

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hmmm, i would probably pay off the loan on the PPOR, then borrow against it.

Then look for undervalued properties and pay cash (lending to a separate trust structure first). Then try to mortgage these properties at 100% of the purchase price to release the money back. Maybe deposit the funds in a 100% offset account while thinking of what to do next.

Probably some shares too.

Depending on your situation, maybe look at gifting it to a trust too. Too much money to be owned by yourself. Maybe spend some of it on legal/tax advice

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Hi Rob

You probably have some friends there who could keep a general eye on the place, and the agent would be managing the property, doing inspections etc. All you would have to do is check your bank account on the internet to make sure the money is going in and the loan is being paid.

Also get a good lawyer to look at the deal before you sign – maybe an Aussie lawyer in Spain.

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