Browse Forums Home Finance Re: Changing loan from Investment to Standard loan 4Apr 24, 2010 6:38 pm VICTORY 1800, EN-SUITE, DOUBLE GARAGE, FAMILY ROOM AND ALFRESCO Land Settled: 20 July 2010 Site Scrap: 30 August 2010 Slab Pour: 20 September 2010 Frame Complete: 23 September 2010 Fascia and Gutters: 28 September 2010 Roof Complete: 06 October 2010 Lock-up complete: 28 October 2010 Plaster complete: 29 October 2010 Fix-out complete: 22 Nov 2010 PCI 7 FEBRUARY 2011 Re: Changing loan from Investment to Standard loan 6Apr 25, 2010 4:56 pm interesting VICTORY 1800, EN-SUITE, DOUBLE GARAGE, FAMILY ROOM AND ALFRESCO Land Settled: 20 July 2010 Site Scrap: 30 August 2010 Slab Pour: 20 September 2010 Frame Complete: 23 September 2010 Fascia and Gutters: 28 September 2010 Roof Complete: 06 October 2010 Lock-up complete: 28 October 2010 Plaster complete: 29 October 2010 Fix-out complete: 22 Nov 2010 PCI 7 FEBRUARY 2011 Re: Changing loan from Investment to Standard loan 7May 01, 2010 10:58 pm I really appreciate your idea regarding building a new house. Regarding the loan principle and interest as per my knowledge loan advisor is the best person to help you with and clear your doubt. I would suggest you to contact loan advisor. Re: Changing loan from Investment to Standard loan 8May 01, 2010 11:37 pm mqtutor Hi I'm planning to build a house for short term investment (less than 1 year). And then I'm planning to move in for living with family. Do I need to break (could be some fees here) and change my loan to standard loan? Or just switch interest only to principal + interest? The interest rate is the same for investment and standard. If I keep it as investment will I still liable to pay land tax etc?? Or can I tell the bank / solicitor that I build the house for living from the start so no hassle when I move in? Thanks all Hi, I have an I/O loan and my bank allows me to pay up to $500 per month without any penalties above the interest only amount. This is pretty close to the P&I amount for my loan so this allows me to have the I/O loan while still being able to put extra payments in when I want to reduce the principal a bit. Also, my experience of I/O loans is that the I/O period is only for a few years (3 or maybe 5 in my case), so it will revert to P&I down the track a few years. Banks will typically hit you up for a switching fee if you did want to make a change. I'd be going to a mortgage broker for some options and seeing what they say you need to disclose to the eventual lender. Regarding taxes and state charges, here in Qld there are more state charges for an IP than a PPOR purchase, and for tax reasons, such as CGT liability, depreciation etc, it is recommended you keep all records of house related expenditure for the whole period of your ownership of the house. I believe CGT liability is based on a percentage of the time the property is owner occupied vs rented, rather than the value of the property at the time it stopped being rented and became your residence, so thorough records will help when you go to sell. Good luck. Mick How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 12359 The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 20084 Hi All, I'm new here! I'm in a block of 4 apartments (Waverley council) and looking to change a window to a sliding door. The window faces an enclosed garden (with a… 0 5829 |