I have paid for the house I am living in, but I want to buy a new bigger house for the family and keep this one as an investment property. Now what I want to know is: Can I go get a loan for the new family home but have it transfered or something similar so its on the investment house so I can claim tax on the loan?[?]
The answer is NO.
So the only thing would be for me to live in this house still and just buy a place as an investment property
I thought I might have been able to swap the loans?creative,
my understanding of the stiuation is that you can claim interest payments on any IP. Therefore when your current residence becomes an IP, you can claim any interest payable on the amount owing on that property. It might also be an idea to sell the property to a company or trust that you comtroll, thus allowing you to claim interest on up to 100% of the value of the hous ewhile using the money to finance your new home.
Yes you would have to pay stamp duty and capital gains tax, but it’s a matter of weighing up the pros and cons. Like reduced interest payment on your new home and tax savings. This is probably only a good idea if you have very good equity in your current home.
This is only an idea that I’m thinking of using myself, so get some advice first but if the situation is right it might work for you.Regards ,
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonScott….you have lost me on the reasoning of why you would sell the current property to another entity…I would really appreciate it if you could explain it again…
Also it sounds like creative has no mortgage on his PPOR..
I have paid for the house I am living inSo even if he does rent it out..there is no interest payments to claim
Cheers
Pete
…Beware of the dreamtakers…
Ok the facts for me are:
The house has been valued at $150k I owe $30k which I used against the house for personal stuff. I have a family trust so whats the best answer to the situation? Sell the house to the family trust?Scott,
Is your house the kind of house you want to have as an investment ? Does it suit your investing end goal ? If you want to move would you be better off just selling it taking Cap gains for free and reinvesting ?Some questions for you.
Enjoy
AD [:0)]
(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinAD,
In short no it’s not!
In reallity I would be much better off selling it, BUT my parents live in it and love it. The main reason for me getting into property aside from the fact that I love it, is to set my parents up to live in the manner that I feel they deserve, part of this is living where ever they wish.
So I figured that I’d try to make the most of a less than ideal situation.
So to answer you yes I would be better off selling and using the cap gains, but it doesn’t suit my need at present.
Willi,
If you were to simply refinance and use the difference to fund a new PPOR the interest on the redrawn amount (as far as I understand) would not be tax deductable. If hovever your investment company bought it from you, all interest accrued would be tax deductable.
AD has a good point though Creative. is your current house the kind that you would want to be investing in it may suit you to sell it and purchase better returning IPs, I know I would sell mine if it were only up to me (I keep showing mum cheaper properties that I think she’ll like![]Regards’
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon
I thought I might have been able to swap the loans?
]The topic ‘Is it possible’ is closed to new replies.
