Who is Accessing Equity?

I hope he told you that the equity loan from your PPOR1 will not be tax deductible when you move into PPOR2. Kind of a useless strategy unless you are planning to convert PPOR2 to IP in the near future. Otherwise, it would be easier to use your cash for PPOR2 , keep it interest only and money in offset. Equity from PPOR1 should go into the purchase of another IP and that equity would be tax deductible.

 

I think in this lending climate, more people like myself is restricted to borrowing capacity rather than equity.

Sucks that my wife decided to stay home after bubs haha

 

That's interesting. He did mention about the loan not being tax deductible but to be honest we are still learning and researching to figure out the best move. If we left the loan as it is it would be positively geared. The New PPOR we are considering is much less $$ than we anticipated so it is looking as though we will purchase PPOR2, convert PPOR1 into IP and purchase IP2. That would maybe fit better with what you are suggesting?

 

It effects everyone, not just you.

I have an out, look outside the square, look at lo doc products, RAMS Lo doc may be an answer or speak to a good mortgage broker on Lo doc product as a stop gap measure.

The idea is to keep investing and you need to take advantage of what will work today, tomorrow is another day

 

yes

 

I've been thinking about topping up my IP loans with CBA and/or Suncorp to invest in shares (via ETPs).

What are the banks' attitude towards this strategy?

Has anyone had recent experience?

 

No problem at all with CBA, and although I haven't used Suncorp recently from memory under 80% should be okay.

Just make sure you split the loans to reflect the different purposes.

 

Thanks @Jess Peletier

 

Fingers cross that I can keep some of the equity releases to build my buffer soon....