All Topics / Help Needed! / Using the equity in my investment property?
Hello.
I have 2 properties – my own home and my investment property.
Would this be possible?
If I were to move out of my home (live somewhere else) and rent my own home out, can I then borrow from the equity in my investment property to pay off my home?Would there be any penalties if I was to move back into my home later? Is there a certain amount of time where this would be acceptable?
Thank you.
Whats the purpose of the loan?
eg.
$100,000 loan on your $300,000 home
$100,000 loan on your $300,000 investment property.If you were to increase the loan on the investment property to $200,000 you could pay out your home loan. You’re IP loan will then really be two loans of $100,000 each.
Deductibility depends on the purpose not the security. So when you move back into your home, the interest on the second $100,000 won’t be deductible as the loan is for your home.
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
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