Please advise re my fresh start with new IP

[tester]

Just competed PPOR built. I have interest only loan with that. Approx 700 k equity.
I am looking at getting first IP using LOC possibly 100% loan on IP plus associated purchase cost.
Our family income approx 200k per annum.
I m looking long term return. Possibly hold 10-15 yrs.
Any advise re finanace and where to start looking will be highly appreciates.
Thanks in advance

 

[Terry_w]

Get a LOC secured against the PPOR.

Keep existing loan as is - with offset.

Borrow 20% plus costs from this and the remainder 80% secured against the investment property, interest only.

Only use the PPOR as security for the LOC

Only use the IP as security for the 80% loan

= 104% loan with no cross securities.

Al wages and rents goes into the offset on the PPOR saving you non deductible interest.

Use an interest free credit card with points to keep your cash in the offset longer saving you more interest.

Consider a separate PPOR LOC to use to borrow to pay investment property expenses (seek tax advice first).

Pay only the interest on each LOC (using the offset funds).

 

[tester]

Thank u very much. Plz explain 2nd LOC in detail. What expense r u ref to ? If the expense are tax deductible then how would I claim the interest. In total I will have three acc per IP. 2 LOC against PPOR and 1 80% IP loan