Hi,
I have some equity & some money to withdraw from my home loan.
If i want to invest what is difference between redrawing and splitting loan to fund purchase.
Thanks
How do you work out the interest charged on the redraw to work out the investment tax deductible amount?
You can easily see the interest charged on a split loan as one loan is private and the new one is for investment purposes.
There is a loan called a line of credit.
can you please explain LOC in more detail?
if you split you can also have the investment loan IO and the home loan PI. This will not be possible with a combined loan – and you wouldn't want to pay down an investment loan while you have a home loan outstanding or you would be losing tax avings
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
A line of credit is like an elastic band. You go to the bank and ask for a line of credit loan. They look at what your income is and what is your allowable LVR. (loan to Value Ratio). So say as an example you have a house worth 400,000 but a loan of say $200,000 based on an 80% LVR you can borrow 80% * 400,000 = 320,000 as your loan is 200,000 you have 120,000 you can borrow. So when you apply for the loan of credit you get a facility that allows you to borrow 120,000 when you need it. if you pay it off you can borrow it again its like an elastic band that strectches to $120,000 if your sevice ability can cover $320,000 . You get charged interest on the 120,000 when you borrow it.
i took PI loan from ANZ in 2006.
If i ask for LOC. Will they set up new loan or they will add LOC to existing loan.A LOC is a separate loan – but be aware it has a higher interest rate. You may be able to get away with a standard loan, IO.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry,
How much it will cost to get this with ANZ?
nothing if you are on the package.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
A Split Loan simply is cutting your loan into portions. If the rates go up there may be a benefit to you however if the rates drop than you may be caught paying too much. It is for that reason some people like to hedge their bet. Others prefer the security of a Fixed Loan ensuring a non-fluctuating rate of payment and allowing for better budgeting. Get the best knowledge and make a wise decision.
Best Wishes,
HomeLoansAustralia.com.au
http://www.homeloansaustralia.com.auray i think u are confusing fixing with splitg. these are separate issues
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Plus he dug up a three year old thread so he could advertise on first post
Speaking of finance and banking issues… does anyone know where I can get some accountant advice for cheap on the internet. Foreign investment taxes are way too complicated to do research on my own. Can someone recommend a more directly related forum?
Avest you wont find any Accountant give you advice over the net as you stated foreign investment Taxes are way too complicated.
Any Accontant worth his salt is going to want to sit down discuss your situation and then provide some advice and recommendations.
Not going be done for cheap over the net.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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