All Topics / Help Needed! / New IP or debt recycle?
Hi
We have just sold our PPOR, currently renting until we settle on land then build. Will be building a PPOR including the land for approx. $540k total.Prior to the sale of the previous PPOR my finances were:
PPOR loan: $250k – Bank A
Equity loan: $90k – Bank A
Investment loan $450k – Bank BIP worth approx $570k
Old PPOR sold for $465kPrior to sale of PPOR I had troubles keeping the $90k loan open – long story.
In the end I ended up having to pay out my $90k equity loan with PPOR sale proceeds.
Therefore I have paid $90k off the investment property and will now have to lend another $90k for next PPOR – non deductable interest!
PPOR loan will eventually be approx $420k in total.
I am thinking of getting some advice but wanted if there were any suggestions on here?
Not sure if I should get another IP this year or look at debt recycling (including possible paying IP loan interest with borrowed money).
Any suggestions?
- This topic was modified 8 years, 10 months ago by Jimmy.
Debt recycling will be slow. Buying another property to sell at a later date may enable you to pay off the PPOR sooner. And you can do both buy and recycle.
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
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