Capitalise Property Interest

Dave
Actually it is possible, I know STGeorge offer a LOC called Portfolio loan
and that gives you the ability to have 1 main LOC and several other individual LOC's with customer specified limits etc.
This makes it easy to keep track of the interest for each IP or each investment.
The only problem is they charge fees of $14/month per LOC.
I believe other lenders have something similar and they also have fees
but if we are in the business of making money fees should not be a concern...
Cheers
Bill

 

This is the perfect product for things like these.... i wasnt going to mention it to keep it simple...

i wasnt aware of the fees but if you get a professional pack it usually wipes out fees.. Maybe something to check with a broker about this...

However $14 a month for simplicity may save many $$$s in accounting fees...

 

I'm refinancing to the St George Portfolio Loan at the moment (just waiting on valuation to come through for the 2nd IP).

The fee for the professional package of the St George Portfolio loan is $375pa, so well worth it if you require more than 2 sub-accounts. Monthly statements are provided for each individual sub-account, so tax time should be hassle free.

The only caveat I see, the Portfolio Loan variable interest rate is 10 basis points higher - currently 7.72% with the 0.7% discount for the professional package.

 

BV & others,

Say the IP loan was $100,000 and after 2 years the balance of the dedicated LOC used to pay the interest & expenses was $20,000.

If I wanted to refinance with another lender, would you see any problem with combining them into 1 loan with the new lender for $120,000 and continuing to claim the interest on the full amount?

Cheers,
Ronan

 

Hi Roman,
I don't see any problem with it as long as you have good traceability.
I haven't done this with my IP's because my IP support LOC is with a different lender.
Keep good clean records.
Cheers
Bill