Preparing for IP#2

Excellent. Definitely do the valuation for IP 1 once you do the reno. Shop around for the valuation (NOT the loan) to see if another lender is prepared to value higher and give you access to more equity which means less LMI.

Also don't forget that LMI is tax deductible on IP's for the first 5 years or the life of the loan (whichever is sooner).

BTW - good work saving $1,500 per week!

Regards

Shahin
 
Hi, why make things so complicated? Simply save $1500 pw until 50K.

It'll take only 6 months.

KY

True however I do not have an offset facility at the moment and due to aggressive savings on a shoe string budget I believe if I redraw the loan for personal expenses (unexpected bills etc) I will create a tax headache yeah? That portion I redraw becomes non deduct able?. At the moment I am paying P&I on loan+ some the rest going into an unrelated savings acct which is not ideal?

Going forward setting the loan up with an offset. Turning repayments to IO and pouring funds into offset be the ideal situation? No tax repercussions if I redraw offset for personal use?

BTW - good work saving $1,500 per week!

It harsh...deleting eBay off my phone went a long way. :D
Cheersa
 
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