Is it possible to increase morgage in an investment property and use the money to reduce morgage on POPR.
Yeah, its called re-financing….
However, you might want to talk to an accountant to make sure that the increased interest that you are paying on your IP will be tax deductible.
Cheers
Paul[suave2]
Yes you can do it.
But it is pointless as the new borrowing will not be deductible and it will only mess things up.
There is no simple way to change the loans from non deductible to deductible.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
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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.
Some tax accountants are of the opinion that you can capitalise interest on an IP loan and then divert spare funds to pay down the home loan quicker. In Dec the ATO put out a ID saying capitalising interest was acceptable, but they withdrew it a few days later.
So it is unclear if this is acceptable at the moment.
Terryw
Discover Home Loans
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for your advice.
My accountant has also confirmed,” that in Australia, the interest on borrowings are tax deductible only to the extent that the purpose of the borrowings are tax deductible”
I came across the concept from a UK based Property website, where it appears to be possible to borrow up to the value at the time of letting and use the cash any way you want, and benefit from tax relief.
Sounds too good to be true.
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