Currently I am living in PPOR. Valued @ $420K owing $255K
Interest variable @ 5.54%.
IP # 1 Bought @ $305K. Valued @ $350K. Rented out @ $340/week.
Interest locked in @ 9.00% (ouch).
We are thinking of making our PPOR as IP # 2 and renting it out @ $350/week on a loan owing $255K.
Because Wife wants to move into a better house.
We have to live somewhere so we rent a wife approved house for ourselves @ whatever is affordable.
My questions are
1. I will still be neg gearing if I make PPOR as IP....but to what extent ?
2. Would ATO allow me to neg gear on 2 IPs ?
3. If I get a LOC to pay for expenses of 2 IPs....Can I then capitalise interest and channel all the rent from both IPs to pay into a principal in IP # 1 with a view to make it PPOR further down the road ?
Interest variable @ 5.54%.
IP # 1 Bought @ $305K. Valued @ $350K. Rented out @ $340/week.
Interest locked in @ 9.00% (ouch).
We are thinking of making our PPOR as IP # 2 and renting it out @ $350/week on a loan owing $255K.
Because Wife wants to move into a better house.
We have to live somewhere so we rent a wife approved house for ourselves @ whatever is affordable.
My questions are
1. I will still be neg gearing if I make PPOR as IP....but to what extent ?
2. Would ATO allow me to neg gear on 2 IPs ?
3. If I get a LOC to pay for expenses of 2 IPs....Can I then capitalise interest and channel all the rent from both IPs to pay into a principal in IP # 1 with a view to make it PPOR further down the road ?