Hello all,
To those in the know,
I have been reading up on a lot of the old posts and I think I understand but I cant be certain I’m not missing anything unless I ask my own question. Sorry.I have an IP that was my PPOR for 12 months. It hasn’t really gone up in value over the last 3 years so I don’t have much equity but I do have $17k in extra repayments and the original deposit that I made when it was my PPOR.When I moved out of my 1st place and decided to rent it out I bought another place on an IO loan and have managed to pay off $50k in additional repayments.Should I . . . . . transfer the $17k from my IP to my PPOR? Then, (when the work dries up and I need to move back to the capital city) transfer the $17K + $50k on to my next PPOR?I know it’s not ideal situation transferring from PPOR to IP but what can you do when you need a roof over your head.Thanks everyone,Ryanp.s. Cumon the Saints!
Repayments of money when redrawn bear the purpose for which the money is used ie if you redraw 17K from your IP to your current PPOR the purpose is to repay borrowings for your PPOR so the interest on the redraw will not be deductible.
Best advice is: convert IP loan to interest only
set up an offset on your current PPOR – put additional money in the offset not off the loanwhen you move and buy another PPOR you can take the money out of the offset and put down on the next PPOR
Yikes. Good job I checked.
Appreciate the help CRJ. There is obviously a lot of knowledge on this forum but at the same time there are a lot of people with user names similar to mine. Thanks for your time.
I will Google IO loans with 100% offset accounts. I thought I knew what they were but apparently not.
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