tlgsydney replied to the topic Determining +ve and -ve gearing in the forum Help Needed! 9 years, 11 months ago
Thanks Richard
tlgsydney started the topic Determining +ve and -ve gearing in the forum Help Needed! 9 years, 11 months ago
Hi,
Just want consensus on determining +ve gearing versus -ve gearing, in general?
If you are paying a PI loan is your capital repayment counted as a “cost” when determining gearing as opposed to essentialliy forced saving. Now I know that I cant claim the capital repayment component, just trying to get it straight in my head about is an…[Read more]
tlgsydney replied to the topic Advice on loan/security structure in the forum Help Needed! 9 years, 11 months ago
Sorry, I may be miss understanding the cross securities thing a little in this case. I thought using the first set of properties as part security (10% cash, 10% property security against existing) the 2nd IPs was “crossing”?
This is just to avoid LMI.
tlgsydney replied to the topic Advice on loan/security structure in the forum Help Needed! 9 years, 11 months ago
OK, undertand where you are now. That comes back to a choice of A, B, C from the first question.
Do I buy 1 at 80% (+ve G) or 2 at 90% (-ve G)? Then 2nd question on 2 IPs, is do you pay LMI on 90% or cross it with other IPs to not pay LMI?
tlgsydney replied to the topic Advice on loan/security structure in the forum Help Needed! 9 years, 11 months ago
Thanks again Richard.
The new IPs would likely be -ve geared and offset against the +ve geared current IPs. As IPs become +ve we would look to expand portfolio and -ve something to offset any +ve. One goal, to have a self sustaining growth.
Yes, trusts etc are something we are considering. Still waiting to meet with our acct to discuss. Current…[Read more]
tlgsydney replied to the topic Advice on loan/security structure in the forum Help Needed! 9 years, 11 months ago
Thanks Richard.
Our PPOR is effectively paid off 160k owing, 160k in offset. This is just a risk/opportunity/comfort decision. On top of this I have another 80k free.
tlgsydney started the topic Advice on loan/security structure in the forum Help Needed! 9 years, 11 months ago
Hi All,
This one is about choices and the pros and cons.
Background
PPOR owned outright, mortgage still active but 100% offset. Property value around 1.5m, mortgage value 160k.
IPs 2 small studios, generating $5k p/a total of +cashflow (these are currently crossed), IO mortgage against them for about 60% of value 450k (this will revert to PI in…[Read more]tlgsydney‘s profile was updated 9 years, 11 months ago
tlgsydney became a registered member 9 years, 11 months ago