Hi,
is it possible to borrow against a fully paid off PPOR and turn it into an IP using the funds to buy the next PPOR and claim the interest expense on the IP? I was advise not to fully pay out and leave some debt so I could refinance from? Is this true?
Hi Stay C
Firstly welcome to the forum and i hope you enjoy your time with us.
Whoever has given you the information above has unfortunately misled you and as suggested will not achieve want you require.
If you redraw the funds on your current PPOR to fund the next property the interest will not be tax deductible.In saying this there are a couple of options as i was saying to a client earlier today in order to achieve the desired result however they will come with some cost (normally additional stamp duty).
Depending on the numbers it could still be very viable although additional information would be required in order to provide a structured answer.
Richard Taylor | Australia's leading private lender
I agree.
you can do that but the interest won't be deductible as the purpose of the loan was to acquire a personal asset.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
