refinance PPOR and convert it to IP

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dcwmk
Member
@dcwmk
Join Date: 2005
Post Count: 1
June 29, 2005 - 5:37 am
We owe $150K on our PPOR (house_A) valued at $370K.and we brought a IP (house_B) in 2003 valued at $525K (owe $450K).
We want to move in my IP (house_B, change it to my PPOR)and refinance my PPR (house_A) to IP loan.
Based on my accountant advise. The purpose of the new loan (refinance PPOR house A) is to pay a house for you to live in (house and as such there is no deductibility for these expenses.
Any ways to refinance ppor and convert it to IP???
pls advise
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
June 29, 2005 - 6:31 am
Only way around it is to actually sell the property to another entity (a spouse, trust etc) and refinance it 100% plus costs. You then have a larger deductible loan.
You shouldn’t have to pay CGT if it was always your PPOR but there will be stamp duty and legals incurred.
Make sure you get some good advice from a professional.
Cheers,
Simon Macks
Finance Broker
[email protected]
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.
Robbie B
Member
@robbie-b
Join Date: 2004
Post Count: 2,493
June 29, 2005 - 2:56 pm
A PERFECT reason to have a loan with Offset structure!!!
Moving into your investment property will see your non-deductible debt jump from 150k to 450k!!! OUCH!!!!!
Personally, if I was certain about moving in for a long time, I would sell the house to a company I own and then rent it back at market ‘rent’ and then all loans would be deductible.
The initial stamp duty costs etc would be a small price to pay if you really want to move into that home.
TMA
http://www.email4money.info
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