Hi,
I have an i/p loan for $142,000 and yes it is in a Line of Credit attached to the home loan.
The home loan product is the St George Line of Credit Home Loan.
At the moment the loan is down to about the 92,000 mark !!!!!!
My question is am I allowed to use the 50k from the i/p to buy another i/p.
Thanks karlmYes, probably. But make sure you set up a separate split for it. which you can do with St g.
In the future i wouldn't use a LOC for the main loan on an IP as there can be tax issues.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
Thanks for the reply, just one more question, if I am allowed to do this the funds that I use would be a deduction is this true ?
Hi Karlm
Yes it should be tax deductible. However, as Terry mentions, it would be a good idea to ask St George to set up a split (sub) account to hold the debt for your new IP. It will will save you a lot in accountancy fees, i.e. it will separate the debt for both IP's into separate accounts.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi Paul,
The setup at the moment is the St George portfolio LOC home loan and has already got sub accounts attached which is standard for this type of home loan setupCheers karlm
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