PPOR to IP and loans?

[jerky]

Hi all

Quick q -

Moving out of PPOR (P&I with offset) and making it an IP, not declaring a new PPOR at this stage.
Do I need to notify the bank of this change? Does it change the loan?
And is it an idea now to move the 3 other IO loans I have on IP's to P&I or should I just leave them and use the extra money as I normally would against the PPOR loan that I am moving out of?

/confused

Edit:
Please ignore, I am having a numpty moment and confused the extra PI amounts for being tax deductible....

 

[Aaron_C]

If your other 3 loans have offsets already then just leave it as IO.

As for your current PI loan - you can usually change it to IO for a small fee (free for some banks). It doesn't change the loan at all except the repayments. You can tell them why you're changing - they won't care.

 

[jerky]

Thanks Aaron,

I will just leave it as is, until its time to get another PPOR then I will restructure.

cheers

 

[bene313]

Remember to get a valuation done.

 

[Rolf Latham]

Thanks Aaron,

I will just leave it as is, until its time to get another PPOR then I will restructure.

cheers

cough..................leaving your now IP loan as PI

You you either don't have much of a taxable income issue, or you could got lots and lots of money in cash to put toward your next PPOR

I mean we know little about your circumstances, and therefore this might be a storm in a teacup, but invariably when people leave things in terms of restructure until "later" I see procrastination all over that.

PS, NOT HAVING A GO , I am a great procrastinator !

ta

rolf

 

[jerky]

Thanks bene, am organising that for this week.

Rolf, I am not quite sure what else I could do to help my situation? Having now only IP's and no PPOR (for at least 12 months anyway), I think my option is to leave the loans as they are - with 5x IO and the one for the apartment (PPOR I am moving from) as PI (but the funds in offset for later). What else could I do to reduce my taxable income?

Thanks for your help

 

[Aaron_C]

It's usually better to change the P&I loan to IO even for your own home - it preserves your cashflow and maintains the interest deductibility of the entire loan when you convert it into an investment property.

 

[wealth]

I thought you also need to notify the bank as isn't it that a PPOR loan has different legal protection as oppose to an IP loan? I remember when I took out the loan, my bank ask me the question and I ask why and he gave me the explanation as described.

Maybe I'm wrong here? Anyone care to clarify?

 

[Rolf Latham]

I thought you also need to notify the bank as isn't it that a PPOR loan has different legal protection as oppose to an IP loan? I remember when I took out the loan, my bank ask me the question and I ask why and he gave me the explanation as described.

Maybe I'm wrong here? Anyone care to clarify?

In the old days, a poor loan was regulated under the state based consumer credit codes.

Not anymore though.

Note that in the old old days lenders used to charge a higher % interest rate

Ta
Rolf

 

[wealth]

I see...thanks for clarification.

But my loan wasn't that old...just two years ago from Bankwest.
And the rates were the same whether its PPOR or IP.

Oh well..anyway, I manage to get the loan regardless, so I'm happy