All sounds good simon but how are you looking to get CF + property? Are you going to manufacture the cf?

Regards

Shahin

Selling has associated costs so I would only consider selling if you can use the capital to invest in something that has far greater prospects in terms or cashflow or CG or both than the current property. 

What does the numbers look like when you compare the new property vs the current unit?

Regards

Shahin

What they have said is correct as long as the loans and properties are separate. I believe that they are saying borrow the whole amount i.e. 105% of the purchase which you should do so you maximum you tax deductibility. The only thing I don't understand is why you are using $80k instead of around $110k. That way you don't pay LMI (which is what you want) and you maximise your tax.

I don't understand the part where they are telling you that you should use $80k and have a loan of $360k. 

Also I would consider getting free upfront vals done on the PPOR to determine the maximum equity available.

Regards

Shahin

Come on guys you work in the same company and you are giving high fives to each other on the same post. That plus you are the only ones that seem to make comments on your own posts. 

Regards

Shahin

Its a need in a haystack solution. So many things can go wrong. Good out of the box thinking but I don't think its a realistic option.

Regards

Shahin

Is it a unit or a house?

Regards

Shahin

Firstly your plan is good especially in that area. There are a couple of good places for develop in WA.

Back to your question – one answer says deposit and the other is servicing. You can somewhat get around servicing but not deposit. Only thing I can think of is to do a delayed settlement on the new purchase but you are saying that you are not going to be ready for another year and that is far too long for a delayed settlement.

Regards

Shahin

You have about 3 or 4 options so do the numbers. For example, you live in the property for say 3 months and then convert this to an IP. This will give you options in terms of CGT but a loss of rent of $6k (lets say $450 per week rent over 3 months). 

The reverse option is to use it s an IP vehicle day won and earn the $6k but you will be up for CGT. 

If you have $50k in deposit then you have the option of buying one property for say $500,000. If you are doing this I wouldn't personally go over a 90% LVR due to the LMI premium even though the LMI is tax deductible for the first 5 years (or duration of the loan whichever is sooner).

Another option is to purchase a property for around $300,000 but only use $30k in savings and go to 95% and use the remainder of the savings to accumulate and purchase another property. 

This comes down to the strategy and numbers. Talk to your banker, broker and accountant about the longer term strategy rather than the transaction itself.

Regards

Shahin

Billy – this is a Homeside deal. Homeside have their own DUA under $1mil and they do not have a postcode restrictions hence why I initially asked if its under $1mil. If everything stacks up then you will be ok. If you just started your job, have multiple credit hits, bad credit history, then no. Get your broker to assess your application to see if everything is ok.

Regards

Shahin

Yes. If the package is under $1mil – Homeside will do it (assuming everything else stacks up of course such as servicing, credit history, etc). 

Regards

Shahin