I have equity in the property I currently live in and want to move to a new house and rent my current property. How do I transfer the equity and maximise my tax benefit on the rental?
Any ideas or experiences with this would be greatly appreciated…postive or negative.
You could transfer equity by increasing your existing loan and paying down your new loan, but the extra interest payments would not be tax deductible as the purpose was private nature rahter than business.
Terryw
Discover Home Loans
North Sydney
[email protected]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
The best bet for maximising tax benefits for a rental is to sell your current PPOR, buy new PPOR, and then buy new IP. However, selling and buying costs will definitely negate that.
If you still have a loan on your current PPOR, I would see if you can change it to Interest Only – or refinance it. Then pay the interest on that, and put all other money towards the loan on your new PPOR.
They’re the only two ways that are feasible.
Cheers
Mel
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