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  1. M

    Loan Contamination

    I've been asking my lender about re-fi'ing my loans with split loans. According to him, he says it's not necessary as he says my tax accountant would take care of calculating the deductible and non deductible part. Is this a common answer that lenders tend to palm to people?
  2. M

    Journey so far - $75k salary (average), 5 years, 10 properties

    Great achievements you have there. Just out curiosity, what profession/career field you are in?
  3. M

    Loan Contamination

    What is the purpose of parking it to the transactions acc? Isn't it better to leave in the loan 2 and pull the funds directly when you need to purchase IP2?
  4. M

    Who do you use for your Depreciation Schedules?

    Thanks Scott. Generally on what circumstances do schedules are required to be updated?
  5. M

    Loan Contamination

    Had been unintentional in the past. Didn't even understand the difference between redraw and offset back then :(
  6. M

    Who do you use for your Depreciation Schedules?

    What defines are good surveyor? I know price and customer services are one of them. But can the report vary that much from one surveyor to another? I see alot of recommendation for BMT and Depreciator but any other reasons other than the above?
  7. M

    Loan Contamination

    What happens if the contamination was done 10years ago? That would involve some hefty amount of money to be paid back to ATO and + the interest on them?
  8. M

    Loan Contamination

    Thanks for clarifications Perp. Learnt something today :)
  9. M

    Loan Contamination

    That's interesting. Say we have: Year 1 IP1 was purchased at 500k IP1 Main Loan : 400k Year 2 IP1 revalued at 600k and buys IP2 at 500k IP1 Split Loan: 100k - (Spent the full 100k for IP2's 20% deposit) IP2 Loan: 400k Year 3 I want to sell IP1 Will the bank allow me to sell IP1? If the...
  10. M

    Loan Contamination

    well the purpose was just to park the extra money borrowed into the redraw loan (IP not PPOR). The intention was to use them for future IP purchases? I have not spent this equity release yet. Story is: Before refinance(1st May) Bank: Westpac IP1 Loan Balance: $500k IP2 Loan Balance: $500k...
  11. M

    Loan Contamination

    what if the top up was transferred to the offset upon settlement and then immediately moved into the redraw acct before any salary/personal savings is deposited into the offset? Would this still be contamination?
  12. M

    Cross-Collaterized - what next?

    Yes, sounds like the mobile lender is trying to flog him off. Lender was trying to convince him that x-coll or not x-coll is not going to affect him differently because he is under 80% LVR. Maybe he should talk directly to one of the branches?
  13. M

    Cross-Collaterized - what next?

    Ok, my cousin has spoke to the mobile lender who originally did their loan contract. Mobile lender's response seems reluctant to do it. He said he can do it but because it was originally one contract, it'll cost him $395 to do another contract to separate out the security. Is this typically the...
  14. M

    Cross-Collaterized - what next?

    Thanks for clearing that up folks!! Will advise him of the risks involved in leaving it till later.
  15. M

    Cross-Collaterized - what next?

    Thanks again Jess. Me and my cousin really appreciate your help on this. Currently his has 2 loans: 400k - 56% LVR 500k - 77% LVR Correct me if I'm wrong, it doesn't matter whether he does it tomorrow, next week, a month or 1 year later. Just so as long he uncrosses the loans before...
  16. M

    Cross-Collaterized - what next?

    Thanks for the tips guys. You are right sir. He is with NAB. So what are the specific actions and expenses involved in the process of untangling x-coll loans? Should he be refinancing out to another bank? Why is it critical to take action now as opposed to taking action in a year or two...
  17. M

    Cross-Collaterized - what next?

    Not too sure on his situation, I will have to check with him. What are the implications of the 3?
  18. M

    Cross-Collaterized - what next?

    I've been told the LVR is about 68% at the moment
  19. M

    Cross-Collaterized - what next?

    Hi all, I was talking to my cousin about x-coll'ing It appears he has the x-coll 2 IP's without even knowing a few years ago. He wants to know if there's anyway to undo this or minimise the impact of x-coll'ing his IP. Or he has dug himself a hole? Thanks guys.
  20. M

    Changes / tightening on servicing for investors

    Appears rather early for them to pull back. Even if they do "start", it may be a slow process to ease back to the level of generosity of banks once were. Can't be sustained forever, but likely for the medium term. I don't think that's their concern for the time being.
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