newbie - looking to purchase IP

[~*pking*~]

Hi guys

i am looking to purchase a 2nd property.

currently:

Value of PPOR = 425K
remaining variable loan = $150K (50k in savings)

i am looking for a new PPOR for around the $500k-$520k mark.

I am new at this so just seeking more advice on what I can do. The current PPOR will be rented out afterwards around $350-$400pw.

 

[Rolf Latham]

Hiya PK

The best thing may be to look at how to restructure your existing debt and ownership so that you can get max tax benefit, IF applicable.

Currently, only 150 000 of the existing loan will be deductible agains the rental income, while 100 % of the loan used to buy the new HOME will be non deductible. A restructure to perhaps sell half to a spouse or to unit trust,while costing a few bucks may be very benefical longer term.

Generically, the finance structure per se without that issue is pretty simple.
Get a loan for depsoit and costs secured on the old PPOR, and get a separate loan for the balance ( often 80%) secured only against the new PPOR

ta
rolf

 

[~*pking*~]

i am currently on a P&I variable home loan and am looking to re-finance it. i've seen on the forum that alot of people change it to IO. do i discuss this with a mortgage broker or do i discuss that with my lender? i originally went through a broker. my next property will be in sydney.

my current income is $40k, but will double when i am in sydney.