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  • Profile photo of night_trainnight_train
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    @night_train
    Join Date: 2011
    Post Count: 4
    August 23, 2011 - 10:31 am

    Thanks for all the advise it is much appreciated..

    Matt

    Profile photo of night_trainnight_train
    Member
    @night_train
    Join Date: 2011
    Post Count: 4
    August 22, 2011 - 12:35 pm
    Jamie M wrote:
    Shape wrote:
    .so you can use a PPOR to borrow money on a IP and still have it 100% tax deductible under a normal structure + loan…doesn't need to be trust etc… Regards Michael

    He's not buying an IP though – he's buying a new PPOR and wanting to covert his current unencumbered PPOR into an IP…..too many acronyms :)

    Cheers

    Jamie

    Thanks guys for the info.. Looks like its a sticky area.. I was advised that I could turn my PPOR into an IP by an FA so thats what I did, unfortunately my accountant says otherwise and I have a bit of a tricky situation to sort out.. Looks like it will be a costly lesson..

    Cheers Matt

    Profile photo of night_trainnight_train
    Member
    @night_train
    Join Date: 2011
    Post Count: 4
    August 22, 2011 - 9:11 am
    Jamie M wrote:
    Hi Matt

    Welcome to the forum.

    You can certainly borrow against your existing PPOR to fund the deposit/purchasing costs on your next PPOR.

    You can also convert your current PPOR into an IP.

    However, in terms of tax deductibility – only the loan securing your current PPOR at present will be deductible (that's assuming you still have a loan on this property and it's not unencumbered). The funds that you borrow to use towards your next PPOR won't be.

    Cheers

    Jamie

    Hi Jamie, thankyou for the advice. I was hoping to be able to claim a tax deduction on the old PPOR (which currently is unencumbered) with the new investment mortgage.. Looks lke I will have to come up with a new plan..

    Cheers Matt

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