Structuring new loans

K

kennyboi

Hi there,

I am looking to see if there is anyone similar to my position to see how you would structure your loans.

I had just purchased a PPOR (3rd property) and will eventually have 2 investment properties, 1 to each individual name on title and loan. The new purchase is in joint name.

The bank said the 2 individual name titled/loaned properties will need the loan to be changed to joint name. I am wondering if tax deduction would be halved as a result? How would you structure if it was you?

Thanks
 
You'll find lending will be much easier going forwards if you and your partner are both on the loans of the future IPs. You can still have the properties in individual names.

Whilst the names on a loan document can create some doubt, in most cases the tax implications (both positive and negative geared) are based on ownership.
 
I'm not a tax person but would suggest that in almost all cases where personal name lending is involved, the tax allocation is based on who owns the asset and the purpose of the loan, rather than the names on the loan per we.

Ta

Rolf
 
As spouses joint names on loans is fine and is probably going to be recommended for most couples to take care of servicing.
 
kennyboi said:
Hi there,

I am looking to see if there is anyone similar to my position to see how you would structure your loans.

I had just purchased a PPOR (3rd property) and will eventually have 2 investment properties, 1 to each individual name on title and loan. The new purchase is in joint name.

The bank said the 2 individual name titled/loaned properties will need the loan to be changed to joint name. I am wondering if tax deduction would be halved as a result? How would you structure if it was you?

Thanks
Click to expand...

Don't take structuring advice from some knob at a bank! Why would you want to double your risk by both being on loans when it is not needed. This will also effect future serviceability.

sounds like you may be cross collateralising as well.
 
kennyboi said:
The bank said the 2 individual name titled/loaned properties will need the loan to be changed to joint name. I am wondering if tax deduction would be halved as a result? How would you structure if it was you?
Click to expand...

I'd run very far away from whoever set that up for you.
 
Terry_w said:
Don't take structuring advice from some knob at a bank! Why would you want to double your risk by both being on loans when it is not needed. This will also effect future serviceability.

sounds like you may be cross collateralising as well.
Click to expand...

I am renewing the interest only period at the same time on our individual loans. I am getting the same advice from nab and cba.
 
kennyboi said:
I am getting the same advice from nab and cba.
Click to expand...

Almost diamtrecially opposed lenders as far as serviceability models go assuming you have or want to build a larger portfolio.

Each of those lenders has their place and time, rarely at the same time though.

Assuming you are looking to build a "large" portfolio, id suggest you do some morework around what lenders to use why and when, or get a broker that knows that stuff to help you.


ta
rolf
 
kennyboi said:
I am renewing the interest only period at the same time on our individual loans. I am getting the same advice from nab and cba.
Click to expand...

Is this advice? Banks will try to protect their own interests and they do this by tying people up as much as possible in terms of personal liability and security. seek non lender advice.
 
You must log in or register to reply here.

Similar threads

P
PPOR refinanced for commercial property purchase
Replies
11
Views
1K
P.Rabbit
P
R
title under wifes name, joint bank application
Replies
12
Views
2K
remingbi
R
M
  • Poll
Family trust overkill?
Replies
12
Views
3K
Paul@PFI
Paul@PFI
E
How is the tax deductibility going to be apportioned?
Replies
2
Views
1K
EN710
E
V
Structuring my loans
Replies
4
Views
926
Rolf Latham
R
Back
Top