We would appreciate feedback regards our current setup (pros cons do's and don'ts) and how to set up for the next step. We have taken advice from Property focused accountant, most happy with that but we have no way to "compare/share" with others in the same situation to ally our actions.
Goal:
Keep IPs and add in 6 to 12 months
Pay off PPOR one day, currently under construction.
Have a decent life, at least 1 toy in shed, wine on shelf and kids educated!
dual income and 3 kid family.
IP1: LVR 65%
IO loan for purchase price with LOC to pay IO and costs
LOC should last 3 years
Rent to PPOR LOC
IP2: LVR 60%
IO loan for purchase price with LOC to pay IO and costs
LOC should last 3 years
Will put rent into PPOR when we move out and into new home (Dec 10)
PPOR
LOC for build, LVR should be 40% on completion.
To receive our salaries and rent from IPs
Pay interest on IP LOCs, lfe costs etc.
LVR across all 3 props 77% at the mo.
Expect CG on IPs to be no less than 10% pa.
I hope to renegotiate LOCs against IPs after they "run dry" and add another say 3 years worth to them given the expected LVRs after the last 3 years allowing me to do that.
One question is the banks calculations on serviceability as LOCs grow AND we seek to add another IP to the portfolio in 2011.
How doe we convince we can service, as it were. Do the banks welcome this type of set up?
Constructive feedback would be welcome on current strategies to see us thru the next few years and beyond.
Anything we should look at, change, consider etc etc.
cheers
Goal:
Keep IPs and add in 6 to 12 months
Pay off PPOR one day, currently under construction.
Have a decent life, at least 1 toy in shed, wine on shelf and kids educated!
dual income and 3 kid family.
IP1: LVR 65%
IO loan for purchase price with LOC to pay IO and costs
LOC should last 3 years
Rent to PPOR LOC
IP2: LVR 60%
IO loan for purchase price with LOC to pay IO and costs
LOC should last 3 years
Will put rent into PPOR when we move out and into new home (Dec 10)
PPOR
LOC for build, LVR should be 40% on completion.
To receive our salaries and rent from IPs
Pay interest on IP LOCs, lfe costs etc.
LVR across all 3 props 77% at the mo.
Expect CG on IPs to be no less than 10% pa.
I hope to renegotiate LOCs against IPs after they "run dry" and add another say 3 years worth to them given the expected LVRs after the last 3 years allowing me to do that.
One question is the banks calculations on serviceability as LOCs grow AND we seek to add another IP to the portfolio in 2011.
How doe we convince we can service, as it were. Do the banks welcome this type of set up?
Constructive feedback would be welcome on current strategies to see us thru the next few years and beyond.
Anything we should look at, change, consider etc etc.
cheers