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The property is in Caboolture. It's way under performing and affecting our finances in general. With our plan to upgrade our PPOR, this IP is holding us back. So it seems cutting our losses and regrouping is a better strategy than "hold-and-pray".

Thank you all for your thoughts. Much appreciated. So basically, we to have to come up with the shortfall whether by cash or a new loan (i.e. Personal loan). Will definitely consult our accountant regarding tax deduction eligibility on this scenario. If we default, then LMI can cover it...

Hello Everyone. :) Say I have an IP that I want to sell. Unfortunately, instead of profit, I will incur a loss. Questions: The current tenants are contracted for several months. By selling the property, what will be the implications on my side? Say the loan of the IP is $300K. If the...

Thanks Terry. We will not be purchasing at the same time - only renting. And it's highly unlikely that we will move back into this converted property to make it our PPOR again.

I'm still confuse on this 6yr CGT rule...:o We've had our current PPOR for around 4years. If we convert this to IP2 then sell it, say 2 years later, what's the CGT situation on this? Thanks.

Thanks Rolf. Both loans are currently IO. IP has no offset account for now while our PPOR has. And if we convert PPOR to IP2, no need to keep offset for it. Is that right?

I should put more info on the spread sheet... :o IP1 is recently acquired so there's really no valuable equity yet. And for the current PPOR, even if we sell it, the profit will not be "huge" enough for a deposit on a house that we would want. :( So the shortfall really is: Current weekly...

Hello, We're entertaining the idea of converting our current PPOR to an IP and renting a bigger place to live in. Just doing a very high-level number crunching and this is how it's looking at: We do want a bigger place but cannot afford to purchase. Thus, the idea of getting back into...

There will be a balance of $59K as it's a term loan and already fully redrawn since it was used of the IP purchase...

Thanks for all the inputs. Cheers! :)

Hello, Say we have 1 IP and a PPOR mortgage. We would like to compare scenarios (e.g. crunch some numbers) like turning PPOR into IP and renting versus selling PPOR and buying a new PPOR. Who would be the ideal number cruncher that we should approach, a tax man or a financial advisor...

Talk about quick reply! :) Thanks Aaron. So the old loan 2 interest and the new loan 2 interest will continue to be tax deductible. Is that right? And for tax purposes, I just have to keep the old loan 2's statement? Also, can I claim the refinance cost?

To extend my original scenario above... Say that an IP purchased is completed. Loan 2's redraw is utilised and now carrying a balance of $59K. So now we're paying interest on Loan 2 - which is tax deductible since it's all for investment purposes. A few months down the road in the same...

Called up Suncorp but they can't do Duplex as it has a shared wall. They can only do contents in this scenario. They're also advising about "Strata Insurance"...

Thanks fernfurn. Will ask for a quote from Suncorp. Thanks Matt for the tips. :)

Thanks Matt. It's an IP and we have a separate landlord insurance.

Hello, What would be the recommended home and contents insurance provider in Queensland. Say the property is in the Caboolture area? At the moment, I have an insurance (car) with Budget Direct. I haven't spoken to them yet but just wondering if anyone here has any experience or...

Highly likely to sell in the future as we want to upgrade, which means we'll probably need bigger deposit. This bigger deposit we're thinking will be the equity we can get from our current PPOR.

Great posts and sharing of knowledge here. :) Going back to one of my questions (as quoted above), is this in the correct line of thinking or totally wrong?

Hi Michael, The redraw of $59K is available for use. It's where deposit + costs will come out. And the IP purchase price is actually $350K. Thanks.