All Topics / Finance / Tax Dedutible?

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  • Profile photo of pppp
    Member
    @pp
    Join Date: 2004
    Post Count: 15

    I have a PPOR worth 1 mil with a 30K loan
    outstanding.I want to use this as security to buy an IP worth 350k.Can i take out 1 loan for 380k and have it all as tax deductible with
    no loan on the PPOR even though the IP is only
    valued at 350K?
    Hope this makes sense!

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    No.

    You can make the new loan interest only and pay down the $30K as quickly as possible which will help a lot.

    Cheers,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of pppp
    Member
    @pp
    Join Date: 2004
    Post Count: 15

    What if the IP was valued at 380K ?

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    It is all about the purpose of the loan. Regardless of the valuations involved we would need to show what it was actually spent on. Borrow every cent for the IP inc SD, legals etc. Put any savings into the PPOR loan.

    Cheers,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Viewing 4 posts - 1 through 4 (of 4 total)

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