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Don't forge the tax deductability of the loan as well. You don't want to offset a loan thats tax deductible when you have another one that isn't !!

I presume when you refinanced to $400k the new bank gave a cheque for $384k to the old bank and $16k to you personally. From that point on, you have to apportion the interest deductability between what was paid to the old bank and paid to you personally. Any principal repayments on the $400k...

You don't compare against the variable rate. You compare against the fixed rate for the remainder of your loan period. Eg, if you have 3 years left on your fixed rate then you compare against the current rate for 3 years fixed.

Why would a foreign investor break the law to buy a property here ? You'd think that they'd be in danger of having their property repossessed by the govt and sold under their noses.

Must admit I'm very surprised that lots of people seem to be unprepared for 10%. Gives me a lot of worries.. My personal thresholds: 10% - Annoying, but wouldn't affect me in the slightest 15% - Start considering maybe selling. Cut down a bit on lifestyle 20% - Holding on barely.. But...

You would hope that the super balance would increase by a third... (12 divide by 9)

Its not about new car vs old.. its about 'cost of ownership'. I punch in the figures into a spreadsheet and work out out how much the per year costs are for a car (over a fixed period, like 4 years), whether its new or old. Some cars like Falcon/Commodore holds value so amazingly bad that...

Its a bit of a grey area. Technically if you apply the law strictly, that money in your offset account is now tainted (if you have personal funds in there). If you have advice from the ATO, make sure its at least written.. and preferably a private ruling. You should be able to keep it all...

Decision rests completely with the vendor. Agent is contracted to the vendor. Usually the agent must pass all offers to the vendor. Up to the vendor what to do with it (which may be ignoring offers, perfectly OK).

I'm sure you know this Rolf.. IO servicability calculation by the bank is not based on just the interest component. Its based on the P&I component on the remaining non-IO period of the load (usually 25 years on a 5 year I/O). This means that the IO loan will have higher servicability...

Just be very careful about where you put the new loan money. It must go DIRECTLY from the bank that generated the loan directly into the new IP (or IP purchase costs). If you store/mix any part of the $420k into your offset or any other account/loan at any time, you will most likely affect...

How do you get the PPOR loan to reduce by $100k ? The way I see it, you borrow extra $420k.. which is ALL used to pay for new IP and expenses. Where does the $100k reduction of existing PPOR loan come from ?

Just released today, some very interesting stats on FHO's.. http://www.abs.gov.au/AUSSTATS/[email protected]/Latestproducts/4130.0Feature%20Article12007-08?opendocument&tabname=Summary&prodno=4130.0&issue=2007-08&num=&view= - The average FHO household income is over $100k. Much higher than national...

you'd think that the rate rise will encourage more AUD buying.. which drives it even further up

Actually, they're getting 8.4%.. as they would have $10.5k in the bank account then. And the $840 of interest they get on the 2nd year is $8.4% of the original $10k investment. That is, if you are using your method of measurement.

GC would've been smacked down GFC or no GFC.... the cycle is so consistent over there... always the same (emotions taking over real life practicality)

You also have to compare median salary to median HOME and not house. That includes apartments and townhouses as well. Especially in Sydney where the gap between house and unit prices is huge and a lot of people living in units.

Wouldn't this scheme be really ideal for studio style student accomodation ? Usually costs $200k to purchase, $250/week rent. With this scheme $200k to purchase, $210/week rent + an extra $167 a week from the govt. Basically the boost adds an extra $127 a week which is $66k over 10 years...

It looks like the general trend of the payment of interest is down. The varying amount of interest from month to month looks to do with the number of days in the month. The repayment amount is fixed from month to month most likely because you're on P&I and not IO.

I used to rent in Meadowbank back in early 2007 (1 bedder, by myself). I was working in North Ryde at the time.