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Thanks for all the advice!
Thanks very much Richard. It appears that in long term if I want to rent out my current PPOR for a longer period than the new IP in future, I would be better off to use cash in offset rather than paying off first and then withdraw from the sub equity loan to pay deposit of new IP so that this amount of money can be deductible for longer when current PPOR is changed to an IP. Am I right on this?
Cheers,
James
Thanks a lot Jamie/Richard/Leadercorp. Really appreciated your advice!
For the equity sub loan , I should be able to get a lump sum from bank so I can pay directly the deposit of IP to the vendor, is it right?
My current bank is persuading me to get a cross-collatteral loan to get 100% loan of the IP, from my research, cross-collatteral loan seems not to benefit borrower but the banker, is that right?
The other thing is, If one day I move to the new investment property as my PPOR and keep the current PPOR as an investment, then the principal I already pay from offset account now won't be deductible from then, is that right? Any better way that allow me to achieve both? for example, can cross-collateral do that?
another big question, if I want to do some innovation on the IP(for example kitchen/bathrooms/curtains/floors, etc) before renting it out, can these innovation costs be tax deductible and how?
Thanks again,
James
Thanks, Jamie. Do u mean I shall use cash in offset account to pay off part of the PPOR loan first, and then split it to two separate loans, where one is still PPOR loan but smaller amount and the other one is for the deposit of the investment house? But what the 2nd one looks like? Is it called LOC loan?
after 2 years, the current PPOR may be rented out as investment while the investment property might become PPOR instead.
James
Current property is PPOR, what shall I do in terms of ＂borrowing" you mentioned?
