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  1. Terry_w

    Rectifying the classic newbie mistake: using cash for IP deposits

    A few ways. 1. Use a LOC secured against a different property 2. Related party borrowings. Can I increase loan size on first IP for the 20% second IP purchase to fulfill tax deductibility? Depends how you structure it. It is possible yes.
  2. Terry_w

    Rectifying the classic newbie mistake: using cash for IP deposits

    Someone could do all the above and sell and IP to by another just to release equity. You must do the numbers to see hoow long it takes to recoup the costs of sale and repurchase. It can also be a good opportunity to restructure - fixxinng purchase mistakes such as the wrong name, joint...
  3. Terry_w

    Rectifying the classic newbie mistake: using cash for IP deposits

    I think it is mainly a mathematical question. Work out the cost of sale. Then work out the non deductible interest you will save. And then you will find out it will take you x years before you are saving money and then you decide whether to make the sale now or wait a bit longer fore more...
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