I think i have a pretty basic question:
I've just purchased my third investment property. IP 1 is paid off, IP 2 has a P&I loan of $300k, and the new IP3 will be IO with loan of around $220k.
Do i combine the loan of IP2 and IP3 together and make it one loan of IO only or keep everything seperate as i plan to now?
My broker tells me that if i combine the 2 loans my accountant might have a hard time portioning the interest for each property.
I will be moving in IP1 in a couple years if that changes anything.
How would you set it up?
regards
Joe
it would be better to leave both loans seperate if you want to make ip2 loan i/o you can but keep it as it's own loan.
as ip1 is the one that you plan to live in this would definatly be the one you want paid off as you have done.
Dustin McMahon
0430110304
Your BrokerHi Joe
Don't cross up the loans – there really is no benefit to you.
Keep them separate – and preferably interest only unless you don't have any other non-deductible debt and don't plan on having any non-deductible debt in the future, then you could consider paying down some of the principle on one of the loans.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie and Dustin for the advice. I wasn't sure if there was any benefit crossing the loans but you've cleared that up for me.
I agree. Keep them all separate.
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
yes keep them separate, setup an offset account and put any principal payments in there to keep yourself flexible.
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