If you have an LOC on your PPOR and use the drawings soley for deposits, closing costs and other expenses for an IP is the LOC interest tax deductable? Is it advisable and does it link the PPOR to the IP?
If the LOC has been set up and used purely for this purpose than yes, the interest will be deductible.
If you have one LOC covering your PPOR and your deposits on investment properties, it's messy and dangerous because you will have a hard time trying to apportion your deductible debt from your non-deductible.
Therefore, if setting up a LOC, it's ideal to have have it set-up as a second loan against your PPOR.
Generally speaking, an interest only loan with offset will provide the same result as a LOC at a lower cost.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie,
Ive been reading some other posts tonight – would like to speak to you direct in view of organising some finance for me. Ive sent you an enquiry with my details via your website.
VictoriaVictoria trust me you will be in good hands with Jamie.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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