All Topics / Help Needed! / Turning PPOR into IP

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  • Profile photo of winadilwinadil
    Participant
    @winadil
    Join Date: 2012
    Post Count: 15
    April 11, 2013 - 1:50 am

    Me and my wife are currently living in our ppor but will be moving out sometime within the 12-18 months as i will be in the ADF and have to move away.

    we will keep the house and turn it into a IP but am not sure what we need to do to structure our loans/trust and what would be better for tax.

    At the moment we pay principle and interest but from reading on the forums we should change it to a interest only loan as that is better for tax  We have looked at the current rental market and with the way things are the house would be positively geared.

    we already have a offset account which we use for everyday use and are good savers.Is it better to go to the bank(ANZ) and just change the loan over or better to go to mortgage broker and see what they can do for us?

    The next thing we need to find out is  a property manager what should we be looking for? as we did rent before and a few of them we just bad/never heard from them as a tenant would/should we be expecting a bit more input from them as a manager?

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    April 11, 2013 - 7:15 am

    Hello

    Generally speaking IO with offset is great because it provides maximum flexibility for the future. 

    If you have other debt which is non tax deductible then best to knock that on the head first.

    If you're planning on purchasing another PPOR in the future whilst keeping the current property as an IP then IO is the way to go.

    Changing to IO with ANZ requires a new application – a broker or bank can assist.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    April 13, 2013 - 11:53 am

    Anz also do a 1 year fixed rate with 100% offset so that might suit.

    The down side as Jamie mentioned is that the it requires a full application.

    We do them fairly regularly with Anz and they are not as painful as most as long you don't want to increase your borrowing at the same time.

    Cheers

    Yours in Finance 

    Richard Taylor | Australia's leading private lender

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