Category «Rental Property – Loans»

Loan top ups and refinancing

Question Hi Julia,I have a question relating to the deductibility of loan interest following a loan top up and potential loan refinance. The detail of my situation relates to the previous question I sent to you last year, but to recap, I have 3 loans with one bank secured against a single rental property. The …

Interest deduction calculations

Question 1. Purchased investment Property Feb 2012 with 540K Loan (A). Was rented out 100% of the time until construction began June 2014 for 3 investment units.2. Drew a construction loan (B) of 450k to build the 3 investment units.3. Shortly before construction started, we decided that we would live in one of the new …

Repay company loan to SMSF

Question About 10 years ago I bought an investment property via a unit trust in a SMSF. At that time the only way to have a property in a SMSF was to also set up a unit trust. The property is 60% SMSF and the company loaned 40%. During the ownership of the property the …

variable loan separation for investment purpose and interest payment.

Question I have a variable loan with limit of 450k which i can use to buy proprties. I m intend to use part of this money to do renovation on 4 existing IPs that , 2 hold 100% my name, 1 hold 100% husband name, 1 is held 50%/50% tennants in common. My accountant suggest …

Loan Interest Deductibility

Question My wife and I own a house in Tasmania. It was purchased for $500,000 7+ years ago. We did not have any mortgage on it. We moved to Victoria 1 year ago for my wife’s work. We rented our Tasmanian house out. It was probably valued at about $480,000 then (1 year ago).We rented …

Loan Consolidation with new lender and maximising debt against rental properties

Question Hi Julia,I’m in the process of refinancing my loans, which look like this:Principle – $1.5m ($2.25m value)Investment 1 – $620k ($600k value) – jointly held with partnerInvestment 2 – $220K ($275k value) – jointly held with partnerInvestment 3 – $728k ($840k value)Is it possible whilst refinancing to move the debt up to the valuation …

Preserving the future deductibility of my mortgage

Question Hi Julia,I have a query around ensuring the future deductibility of interest on my mortgage.I purchased a property for myself and my wife to live in around 18 months ago at a 90% LVR. The loan for this was established as interest only with an offset account, given the expectation that at some point …

Splitting of loans and share purchase.

Question Hi JuliaBackground:I have a property that was purchased originally as my place of residence- and I lived in it for about 2 years, before moving and then renting it out. The loan secured over this property is for a total of $297000. The loan was originally a line of credit loan. After paying a …

Is CBA "MISA" – "good"

Question Hi,You write about an offset-Account and its use to make sure the Loan’s interest remains claimable if the money is drawn out of the Offset account rather than the Loan account. This topic became completely clear to me however unfortunately It doesn’t seem that the Banks really can give me a proper answer if …

Refinance PPOR to an investment property

Question I have spoken to a chartered accountant, however, I am not feeling comfortable on her advice as the information I read on the internet contradicts her advice.Essentially, I have Full time job @ $99,000 p.a. My wife has no income beside Bank Interest which is not significant.We are living in our home (PPoR) worth …