Building 2 properties at same time....

[Everton]

One property will be PPOR, one will be IP.

Can I proportion 100% of my borrowings on the IP (not exeeding IP costs ie half of land/development costs and 1 build contract) and the remainder on the PPOR?

Property demolished was an investment property before subdivision.

How does the Tax office treat the loan if before build I have say $50k in offset facility (ready for establishing costs later).

I hope that as long as I dont claim interest higher than my costs then I can redraw later and still claim 100%?

Does this sound right?? - or have I confused everyone?

 

[Terryw]

If you use any of the borrowed funds for the PPOR then the interest on these wouldn't be deductible.

It all depends on how much cash you have and the LVRs I think. Use all the cash for the PPOR and borrow as much as you can for the investment - using the PPOR as security if need be.