Hi All,
Some time in the future my husband and I intend to build our dream home on land we purchased very cheaply but are still paying off.
We’ve lived in our PPOR for just over 12 months and are currently paying more than the minimum on our mortgage payments. As we intend to keep our current house as an IP is there a way we can borrow against it and still claim deductions.
Is it possible/legal or worth creating a trust that can loan the funds to purchase our house from us at the market value (which is considerably more than we owe) as an IP and then use this for our new PPOR? Or should we slow down our payments to a minimum then transfer mortgage to an IP mortgage and get a new mortgage for our new home? Or simply sell and move on? Grasping at straws I know but I really have no clue.
Another factor to consider is if we purchased the property as an investor it doesn’t follow the 11 second rule. I estimate it to be worth at least $150,000 and probably wouldn’t rent for more than $160 – $180pw.
ALL ideas will be most welcome.
Thanks.[blink]
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