Hi all
Thanks to the inspiration of this forum, I think have made my first moves towards my first IP. In the past couple of weeks I have changed from a standard P&I home loan with ANZ to their Equity Manager LOC with the BreakFree package.
After valuing my PPOR, they offered a $210K LOC, so after taking off the original $125K that I still owed on my other mortgage, I have $85K available in the LOC to use as a deposit on an investment property. My intention is to finance the remainder from another source to avoid cross collateralisation (yes?no?)
The part that freaked me out I guess is that the way they have set it up, I only have the LOC account, and a credit card account. So all deposits and withdrawals, direct debits etc go straight to the LOC account. Thats a bit scary in my books as it would be easy to loose track of spending and eat away at that LOC that is meant for investing. Not sure I want to live with a LOC like that.
When I asked the bank manager how I could set it up so I could keep the interest on any part of the LOC used for investment separate so I can claim it on tax, he assured me my accountant would know how to work that out.
I know with the BreakFree package you are supposed to be able to set up five loan accounts, and I thought that is what they would suggest. To be honest, I dont know how familiar with the products they are.
Does this set up seem right? Appreciate hearing from anyone else with LOC, esp. ANZ and BreakFree.
After this is sorted out, on to the next step, looking at places.
Thanks
Cam
Thanks to the inspiration of this forum, I think have made my first moves towards my first IP. In the past couple of weeks I have changed from a standard P&I home loan with ANZ to their Equity Manager LOC with the BreakFree package.
After valuing my PPOR, they offered a $210K LOC, so after taking off the original $125K that I still owed on my other mortgage, I have $85K available in the LOC to use as a deposit on an investment property. My intention is to finance the remainder from another source to avoid cross collateralisation (yes?no?)
The part that freaked me out I guess is that the way they have set it up, I only have the LOC account, and a credit card account. So all deposits and withdrawals, direct debits etc go straight to the LOC account. Thats a bit scary in my books as it would be easy to loose track of spending and eat away at that LOC that is meant for investing. Not sure I want to live with a LOC like that.
When I asked the bank manager how I could set it up so I could keep the interest on any part of the LOC used for investment separate so I can claim it on tax, he assured me my accountant would know how to work that out.
I know with the BreakFree package you are supposed to be able to set up five loan accounts, and I thought that is what they would suggest. To be honest, I dont know how familiar with the products they are.
Does this set up seem right? Appreciate hearing from anyone else with LOC, esp. ANZ and BreakFree.
After this is sorted out, on to the next step, looking at places.
Thanks
Cam