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Do they allow you to fix a LOC rate tho?

Can you tell me which lender/s for 1 & 2? 3 /good for if you want to convert a non deductible PPOR to a IP and keep all the loan fully tax deductible. 4/ Because the funds drawn from the loan are placed into the offset account the bank looks at those funds in offset as savings.

1/ Lower interest rates 2/ Ability to fix 3/ Tax structuring advantages 4/ Lower risk assessment to banks/lenders Hope this helps.

You sure can ! This is a far better way IMHO :)

Thanks for sharing David. As you can appreciate, there is no right or wrong way. Just different ways that can be chosen and best suits ones circumstances, personal risk profile and preference.

I use Investment savvy mortgage brokers to find the banks/lenders and appropriate loan products to fit my needs. I spread my banks/lenders to minimise my exposure risks and increase negotiation power. Currently I use products belonging to Westpac, RHG, & Citibank. Hope this helps.

TAG, you have to tell them.....they are only bank employees who only know how to fit round pegs in round holes because thats bank policy. If they knew any different they wouldn't be employees very long.

Everyone can debate this until the cows come home and at the end of the day it doesn't matter one bit whats discussed here or anywhere else for that matter. The truth of the matter, its a relatively simple process to cover your behind prior, should you be planning to go down this route - Its...

By putting your rental income into your PPOR loan you will reduce your non tax deductable loan quicker. You could then capitalise the interest payable on your LOC plus also the IP expenses within your LOC as that loan is tax deductable because its used purely for income producing investment...

Gooram, The banks will work out your DSR on the LOC\s as if they're full drawn. I would suggest you maximise your LOC\s limits as high as you possibly can. Then finance (possibly lo/no doc) the IP loans with another lender to spread your exposure risks... Hope this helps.

Gooram, The answer to that question is determined on what you are trying to achieve. Then structure to suit. No good structuring something thats going to restrict you. Confusion reins when no clear definative direction is planned. A millionaire mentor told me many years ago- if you know...

BC, I would strongly suggest you approach your own tax accountant or the ATO to get a ruling & definative answer in writing to this question. That way there is no gray areas or non qualified forum hearsay to throw confusion onto it for you. Hope this helps.

Hi Redwing! I used to borrow 106% of the IP purchase price. I did this for my first few properties. You simply cross coll until such time as the IP grows in value to where the loan becomes 80% LVR, then release the crossed security. It was simply apply to the bank to release the security on a...

Redwing, I have 3 Loc's with WBC and have direct debits set up from all of them.

You tell them "Your" reason. You cant tell them anyone elses.

This is the same premise by which I've modeled my chosen CGA strategy upon. The rental income is purely used to cover IP portfolio holding expense costs whilst the Equity created from the Portfolio Asset Base is drawn down upon to provide a Tax Free income for lifestyle & investment purposes.