G'day all…
Just trying to get the low down on refinancing. Have 2 IP's with about $100,000 equity built up… have only had the mortgage about 18months of a 30 year package. Does refinancing free up some cash to repurchase? Paying interest and principle easily with cash left over, will refinancing at the end of the year be enough to lower my repayments down to the point where I can buy a property around the 100-150k price range? Cheers
tuggerwaughTugger
Using the equity in the properties by refinancing them will provide you with access to capital to purchase your next IP and so on.
I would advice you to consider switching the loans to interest only which in turn will reduce your loan repayments but also free up monthly capital to put towards the next IP.
If your mortgage broker structures them correctly you should be able to continue buying and building up an good portfolio and at the same time minimising your tax position.
Richard Taylor | Australia's leading private lender
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If your mortgage broker structures them correctly you should be able to continue buying and building up an good portfolio and at the same time minimising your tax position.[/quote]
My partner and I have done all of this by ourselves so far but we will definetley be looking to talk to someone about how best to structure everything. In regards to interest only we are just waiting for our LVR to come down below 80% as our mortgage requires this to transfer to interest only. cheers ricjard
tuggerwaugh
tugger
Really i have never heard of a lender that insist on that.
Certainly would never recommend that. If you redraw the funds above 80% an the use is not for investment purposes you will be unable to claim the interest as a Tax deduction. Not sure who the lender is but it doesn not sound like a very flexible package.
Have the properties been purchased as Joint Tenants or Tenants in Common ?
Richard Taylor | Australia's leading private lender
We are with Wizard….. we are living rent free in the NT so we are throwing as much money into the loan as possible… When i enquired about interest only (for when we return to rent paying or a PPOR) I was told that we would have to bring the LVR down to 80%…. i think it was because we wanted a no fuss loan and had no expenses or debt or rent to pay….
tuggerwaughsorry missed a question… we have purchased the properties as joint tenants… we are in a defacto relationship with no kids…cheers richard
tuggerwaughTugger
An interest only loan with a 100% offset account would be the preferred way to go.
One day you might want to purchase a PPOR so would need the capital but in the meantime gives you lots of options.
Richard Taylor | Australia's leading private lender
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