All Topics / Help Needed! / Remortgaging an investment property

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  • Profile photo of TomTom
    Participant
    @cherry120
    Join Date: 2014
    Post Count: 1
    July 2, 2014 - 9:25 pm

    Hi there,
    Hope somebody can help answer this –

    Scenario : 2 investment properties both on P & I loans, not very tax efficient so plan is to remortgage property A on an Interest only loan and do some capital raising to pay off property B (it is not easy to remortgage property B as it is an overseas property). Does anybody know if it possible to claim full tax relief on the new mortgage (which would be interest only) as it was not for personal use, as such, but used for investment purposes?

    Many thanks for any help with this query

    • This topic was modified 10 years, 5 months ago by Profile photo of Tom Tom.
    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    July 3, 2014 - 12:13 am

    Best to seek specific taxation advice from an accountant on that one.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 3, 2014 - 10:39 pm

    Generally refinancing a loan (not a mortgage) won’t affect the deductibility of interest. However if you borrow more money the interest on this will only be deductible if it is used for investment purposes or business purposes.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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