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  • Profile photo of LegendtofskiLegendtofski
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    @legendtofski
    Join Date: 2012
    Post Count: 5
    January 17, 2012 - 5:28 am

    What numbers? Ok..

    current mortgage ~ $18,000 left, will be paid off within 2 years 
    value of current property  ~$480K

    Borrow ~$520000 to buy a $500000 property on say a 25 year loan…for an investment property getting $1600 pm rent..

    After 2 years move into the investment property and rent out the owned property at around ~$1800 pm.

    The mortgage is combined using the rent on the owned property to pay interest or mortgaged property or something like that?

    Profile photo of LegendtofskiLegendtofski
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    @legendtofski
    Join Date: 2012
    Post Count: 5
    January 16, 2012 - 4:46 am
    Qlds007 wrote:
    Legend like Terry i am slightly confused.

    If you then intend to move into this new investment property then the rent you receive on the current property with minimal mortgage will be added to your income and Tax paid on this. The only interest you will then be able to claim is the interest on the $20K loan.

    Loan needs to be structured correctly to cater for your requirements now as well as into the future.

    You are unable to redraw the available funds on your current property, move out and claim the interest as a deduction.

    If i am totally off the mark please let me know and we can revisit the question.

    Cheers

    Yours in Finance

    Yeah well he said I basically live in my current property and pay it off, but buy an investment property while living there…Then use the money from renting out the fully owned property to pay off a combined new mortgage that was used to leverage the investment property, so technically you have a double mortgage, but already own one property. Apparently that how heap of people that only earn $60K are able to build portfolios and wealth, buy jetskis and SUVs and 55inch plasma TVs.

    Profile photo of LegendtofskiLegendtofski
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    @legendtofski
    Join Date: 2012
    Post Count: 5
    January 15, 2012 - 11:54 pm

    The thing is I will be doing the rennovation while clients are renting the property..What about painting and stuff like that, its to update and repair certain features….

    Profile photo of LegendtofskiLegendtofski
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    @legendtofski
    Join Date: 2012
    Post Count: 5
    January 15, 2012 - 11:14 pm

    I'm thinking of doing a similar thing..HOWEVER I wish to move into my place of residence a few months after the work is done. Can only only claim depreciation for those two months or over the life?

    Or can I define the rennovations as a 'repair' since the kitch and bathroom haven't been fixed since the house was built (over 45 years ago!)

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