I have been avidly following this forum for a few weeks and learnt a lot more than I ever have outside of it. I must say there are some very admirable people with inspiring stories on this forum, and I?m hoping that some of you will be able to answer a few queries that I have. I've searched through the forum for answers but have ended up absolutely confused and our accountant seems to be too busy with the bigger fish to bother returning any of our calls.
To give you a brief background, my wife and I are moving in with family for the sake of my 2 year son (long story!), and want to rent out our PPOR soon if possible. Not realising we may head down this route some day, we have been diligently making extra repayments on the loan and currently have a redraw amount available of just under $90K. Original loan amount was $520K and current balance is sitting at $365K, not including $15K in the offset account. We have no other personal debt. I am a junior partner in a business and draw roughly $35k in profit for now before tax, paid into a family trust fund. Our wages are roughly around $165K combined paid into the offset account. I?m also in the middle of negotiating a lease on an additional new business for which I will need immediate funds to get it off the ground (Roughly around 50-60k to start with).
My queries are these:
1. Am I able to draw the redraw amount out of the loan to use for the cost of setting up the new business? Can it be done now before it becomes an investment property? From the few posts that I have read, it seems it can be done for other income producing purposes but not for say, buying a car for personal use. Bear in mind it hasn?t been put on the rental market yet.
2.We also want to purchase an additional investment property using the equity in the current property down the road. Is there a certain way we should go about setting up the loans which also utilises the family trust effectively for tax purposes.
There are so many questions swirling in my head but definitely don?t have the thorough knowledge and experience to pull it off without some sound advice. I?m hoping someone can guide me through this maze! Very eager to "learn the ropes" of property investment and thank you in advance....
Oh, and I think I need a new accountant too!
To give you a brief background, my wife and I are moving in with family for the sake of my 2 year son (long story!), and want to rent out our PPOR soon if possible. Not realising we may head down this route some day, we have been diligently making extra repayments on the loan and currently have a redraw amount available of just under $90K. Original loan amount was $520K and current balance is sitting at $365K, not including $15K in the offset account. We have no other personal debt. I am a junior partner in a business and draw roughly $35k in profit for now before tax, paid into a family trust fund. Our wages are roughly around $165K combined paid into the offset account. I?m also in the middle of negotiating a lease on an additional new business for which I will need immediate funds to get it off the ground (Roughly around 50-60k to start with).
My queries are these:
1. Am I able to draw the redraw amount out of the loan to use for the cost of setting up the new business? Can it be done now before it becomes an investment property? From the few posts that I have read, it seems it can be done for other income producing purposes but not for say, buying a car for personal use. Bear in mind it hasn?t been put on the rental market yet.
2.We also want to purchase an additional investment property using the equity in the current property down the road. Is there a certain way we should go about setting up the loans which also utilises the family trust effectively for tax purposes.
There are so many questions swirling in my head but definitely don?t have the thorough knowledge and experience to pull it off without some sound advice. I?m hoping someone can guide me through this maze! Very eager to "learn the ropes" of property investment and thank you in advance....
Oh, and I think I need a new accountant too!