I have a PPOR worth 1 mil with a 30K loan
outstanding.I want to use this as security to buy an IP worth 350k.Can i take out 1 loan for 380k and have it all as tax deductible with
no loan on the PPOR even though the IP is only
valued at 350K?
Hope this makes sense!No.
You can make the new loan interest only and pay down the $30K as quickly as possible which will help a lot.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
What if the IP was valued at 380K ?
It is all about the purpose of the loan. Regardless of the valuations involved we would need to show what it was actually spent on. Borrow every cent for the IP inc SD, legals etc. Put any savings into the PPOR loan.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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