澳洲Australia property Beginner help needed | Sydney


在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m


The usual story - long time reader, first time poster.

My wife and I currently have a PPOR (value 410k, owe 308k). We've found a new house that's perfect for our expanding family and would like to keep the PPOR and convert to an IP, but need some guidance with the following:

  • Is there anything particular that needs to be done to convert the PPOR to an IP?
  • We have refinanced the loan in the past (to add a kitchen, buy a car etc). Can we claim against the interest on the full amount as it stands today?
 

评论
csd said: ↑
  • Is there anything particular that needs to be done to convert the PPOR to an IP?
Click to expand...
  • No

    csd said: ↑
    [*]We have refinanced the loan in the past (to add a kitchen, buy a car etc). Can we claim against the interest on the full amount as it stands today?Click to expand...
Kitchen - yes. Car - no.  

评论
You should convert your current loan to interest only if it isn't already. There's no point paying down this debt if it's going to be deductible in the future. If your lender allows - set up an offset account and pay the would be principle repayments into that for the time being.

Chances are you want to use the equity in your current PPOR for your next purchase. Therefore, you'll need to set up a second loan for this purpose so you can clearly define your deductible debt from your non deductible.

Oh, and don't let your banker/broker cross up your IP and new PPOR.

Cheers

Jamie  

评论
Thanks for the quick responses and advice.

My current loan has an offset facility, though I'm not sure whether I can covert it straight to an IO loan.

So I would end up with three separate loans?
  • IO (IP)
  • PI (deposit)
  • PI (new PPOR)

What do I need to know to make sure the bank/broker doesn't cross up the PPOR and IP?  

评论
csd said: ↑
Thanks for the quick responses and advice.

My current loan has an offset facility, though I'm not sure whether I can covert it straight to an IO loan.

So I would end up with three separate loans?
  • IO (IP)
  • PI (deposit)
  • PI (new PPOR)

What do I need to know to make sure the bank/broker doesn't cross up the PPOR and IP?Click to expand...
Yep, that's pretty much it.

If you think you might turn your next PPOR into an IP at some point then I'd make them all IO with an offset against the large loan against your future PPOR.

Your banker/broker needs to top up your current loan and create a separate loan split. They should only use your current PPOR (future IP) as security for this.

The third loan should only be secured by your future PPOR.

If in doubt, the loan offer documents will outline which securities are being used. Let your banker/broker know that you don't want your loans crossed. If they give you a blank look - then go elsewhere.

Cheers

Jamie  

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