Hi,
I m getting confused but excited with the news (if its possible).
A bit of back ground, my PPOR loan is fully paid/closed off. And we are now thinking of upgrading to a better home, but am hoping to rent out the current PPOR-1. But that means the new PPOR-2 will have a huge loan and the interest is not tax deductible.
However, I read in one of the posts yesterday and confirmed with my accountant that I can take out a new HL (80%=400k) against PPOR-1 and put in a 100% offset while I m still living in it.
And say in 2 months time, we see a property that we like, we can use the money in the offset account to purchase PPOR-2 and rent out PPOR-1, then the interest accrued on the 80% = 400k will be tax deductible!!!!!!!!!!!!!!!!!!!!
I thought the basis is that if the money is used for personal used, it doesn’t matter when the money/loan was taken out, it cannot be tax deductible.
So can someone confirm the above method is legit, if so I m going to make an appointment with the back this arvo
Thanks for your advise in advance.
PS. For all your good intentions, but pls stick to the question, I know there might be better alternatives like selling the property, sell to partner or trust etc etc. but just want to know if this info provided is correct
I m getting confused but excited with the news (if its possible).
A bit of back ground, my PPOR loan is fully paid/closed off. And we are now thinking of upgrading to a better home, but am hoping to rent out the current PPOR-1. But that means the new PPOR-2 will have a huge loan and the interest is not tax deductible.
However, I read in one of the posts yesterday and confirmed with my accountant that I can take out a new HL (80%=400k) against PPOR-1 and put in a 100% offset while I m still living in it.
And say in 2 months time, we see a property that we like, we can use the money in the offset account to purchase PPOR-2 and rent out PPOR-1, then the interest accrued on the 80% = 400k will be tax deductible!!!!!!!!!!!!!!!!!!!!
I thought the basis is that if the money is used for personal used, it doesn’t matter when the money/loan was taken out, it cannot be tax deductible.
So can someone confirm the above method is legit, if so I m going to make an appointment with the back this arvo
Thanks for your advise in advance.
PS. For all your good intentions, but pls stick to the question, I know there might be better alternatives like selling the property, sell to partner or trust etc etc. but just want to know if this info provided is correct