Hi guys
My wife and I bought a property 4 years ago which is now our PPOR. Naturally we want to start building our portfolio so we've decided that we want to purchase a cheap property in rural NSW after doing a lot of research. I have to admit I'm hopeless with the topic of finance and tax so bare with me!
Now, we've gone to our bank (CBA) and spoke to the lender via video conference and whilst the lady was knowledgeable, we felt that the process was rushed and only when we got home that questions started arising.
1) Since our requested loan amount is only $75K, she told us only a 'top up' was required on top of our existing mortgage (as we have more than enough equity from our PPOR). So in essence, we are adding $75K to our current home loan.
Question: We were thinking wouldn't it be more effective if the 75K loan was treated as a separate home loan so that we could pay off the PPOR debt faster - and pay less interest altogether in both loans? Is a 'top up' more beneficial to them as they can squeeze more out of us?
2) I have a Trust account with my business as a trustee - I've read somewhere that if I purchased investment properties using this trust account as the name, it would have considerable benefits with land tax (amongst other things).
Question: What exactly are the advantages of this as opposed to our joint names? (I didn't think of this when the lady asked me and as a result we both just said to put it in our names 50/50 for the pre-approval process)
Any help appreciated!
My wife and I bought a property 4 years ago which is now our PPOR. Naturally we want to start building our portfolio so we've decided that we want to purchase a cheap property in rural NSW after doing a lot of research. I have to admit I'm hopeless with the topic of finance and tax so bare with me!
Now, we've gone to our bank (CBA) and spoke to the lender via video conference and whilst the lady was knowledgeable, we felt that the process was rushed and only when we got home that questions started arising.
1) Since our requested loan amount is only $75K, she told us only a 'top up' was required on top of our existing mortgage (as we have more than enough equity from our PPOR). So in essence, we are adding $75K to our current home loan.
Question: We were thinking wouldn't it be more effective if the 75K loan was treated as a separate home loan so that we could pay off the PPOR debt faster - and pay less interest altogether in both loans? Is a 'top up' more beneficial to them as they can squeeze more out of us?
2) I have a Trust account with my business as a trustee - I've read somewhere that if I purchased investment properties using this trust account as the name, it would have considerable benefits with land tax (amongst other things).
Question: What exactly are the advantages of this as opposed to our joint names? (I didn't think of this when the lady asked me and as a result we both just said to put it in our names 50/50 for the pre-approval process)
Any help appreciated!