working out the finance

[glenn123]

Hi,

I am moving from my PPOR (worth around $400K) with a loan of $30K (loan of $85K and $55K sitting in offset account).

I am planning on first buying another PPOR (PPOR priced at around $500K) and then selling my current PPOR ($400K). I have a pre-approved loan (new loan of $550K, not bridging loan) from St George for the purchase of the new PPOR.

Now should i use the 50K (sitting in the offset A/C) as the 10% deposit for the new PPOR ($500K) or should i get a 'deposit insurance bond' from the bank for a small fee.

I am worried if i use up the $50K in the offset account then i will have almost no funds left for any contingent expenses. Thanks.

 

[Aaron_C]

Not a bad idea in your circumstances, but there is a fee payable.

 

[Jamie M]

Always good to have some SANF money in the bank in my opinion.

You'd be looking at around $600 for a bond.


Cheers

Jamie

 

[jonmardell]

get some quotes on the deposit bond as they vary in price. deposit power is one of the main players in this space along with most banks.

Hi,

I am moving from my PPOR (worth around $400K) with a loan of $30K (loan of $85K and $55K sitting in offset account).

I am planning on first buying another PPOR (PPOR priced at around $500K) and then selling my current PPOR ($400K). I have a pre-approved loan (new loan of $550K, not bridging loan) from St George for the purchase of the new PPOR.

Now should i use the 50K (sitting in the offset A/C) as the 10% deposit for the new PPOR ($500K) or should i get a 'deposit insurance bond' from the bank for a small fee.

I am worried if i use up the $50K in the offset account then i will have almost no funds left for any contingent expenses. Thanks.

 

[Shahin_Afarin]

another option (depending on a few things such as requiring a settlement date to be booked) is for the banker or broker to set you up with a temp OD. The branches have the DUA to do this. Admittedly, I have never done one via St George because I don't use them that often but should be a similar process to the other banks.

 

[Aaron_C]

Admittedly, I have never done one via St George because I don't use them that often but should be a similar process to the other banks.

Hmm................anyone of us dare to find out? lol!

 

[Terry_w]

Hi,

I am moving from my PPOR (worth around $400K) with a loan of $30K (loan of $85K and $55K sitting in offset account).

I am planning on first buying another PPOR (PPOR priced at around $500K) and then selling my current PPOR ($400K). I have a pre-approved loan (new loan of $550K, not bridging loan) from St George for the purchase of the new PPOR.

Now should i use the 50K (sitting in the offset A/C) as the 10% deposit for the new PPOR ($500K) or should i get a 'deposit insurance bond' from the bank for a small fee.

I am worried if i use up the $50K in the offset account then i will have almost no funds left for any contingent expenses. Thanks.

Since you are selling the first one and the second will be an investment there would generally be no tax issues, or only short term issues so using the offset money may be fine.

But things often change and you may end up keeping the 1st one. So you may want to consider some strategies.

Also to avoid potential tax problems in the future and to greatly increase asset protection there are also a few strategies which you could implement before you settle the new one.

Talk to your neighbour over a BBQ or get some real advice from a lawyer.