Any advice greatly appreciated !
We bought current PPOR in 3.5 years ago for 250k. We have been making additional payments on this loan in this time & have completed some renovations & the loan is now 210k, valued 7 months ago at 320k. We are currently in advance about 15k on this loan that we can redraw, but loan only ever used as a loan so all payments have been loan repayments with 2 redraws for renovations over the 4 years.
We purchased 1st IP in November 2009 for 237k, borrowed the total amount using some equity in PPOR for deposit. This property is negatively geared & we are making the minimum required payments.
We are now looking at purchasing a 2nd IP (350k), we have cash for deposit & will negatively gear this property too.
We are also planning on soon moving in to my partner's parents family home (will only pay minimal rent as they have a second home they are moving to so we are doing them a favour by looking after this large empty home) for the next few years & renting out our PPOR. The PPOR has been renovated, but there are a few things we want to finish off (like a new front fence) before we rent it out.
I am just wondering if there is anything we need to take into consideration with this? should we use the 15k in advance to make these final renovations on this PPOR before it becomes an IP? Would this affect claiming interest as a deduction when it becomes an IP? Would any of the renovations we have completed on this property whilst being an IP be deductible or will they just be used in a depreciation schedule ?
& if we have the cash deposit for the 2nd IP (350k) & also an additional 30k (recent inheritance from an aunt) should we pay this off one of the IP loans or is there some way we can put it in an offset account?
Excuse my ignorance, I am just not sure how offset accounts work, but if we are ultimately going to have 3 IPs in a few months I want to ensure we have everything right & maximising the 3 IPs.
Thanks in anticipation
We bought current PPOR in 3.5 years ago for 250k. We have been making additional payments on this loan in this time & have completed some renovations & the loan is now 210k, valued 7 months ago at 320k. We are currently in advance about 15k on this loan that we can redraw, but loan only ever used as a loan so all payments have been loan repayments with 2 redraws for renovations over the 4 years.
We purchased 1st IP in November 2009 for 237k, borrowed the total amount using some equity in PPOR for deposit. This property is negatively geared & we are making the minimum required payments.
We are now looking at purchasing a 2nd IP (350k), we have cash for deposit & will negatively gear this property too.
We are also planning on soon moving in to my partner's parents family home (will only pay minimal rent as they have a second home they are moving to so we are doing them a favour by looking after this large empty home) for the next few years & renting out our PPOR. The PPOR has been renovated, but there are a few things we want to finish off (like a new front fence) before we rent it out.
I am just wondering if there is anything we need to take into consideration with this? should we use the 15k in advance to make these final renovations on this PPOR before it becomes an IP? Would this affect claiming interest as a deduction when it becomes an IP? Would any of the renovations we have completed on this property whilst being an IP be deductible or will they just be used in a depreciation schedule ?
& if we have the cash deposit for the 2nd IP (350k) & also an additional 30k (recent inheritance from an aunt) should we pay this off one of the IP loans or is there some way we can put it in an offset account?
Excuse my ignorance, I am just not sure how offset accounts work, but if we are ultimately going to have 3 IPs in a few months I want to ensure we have everything right & maximising the 3 IPs.
Thanks in anticipation