I am new to investing in property.
I intend to convert my current place of residence to investment property as
I have purchased a bigger house which will be my new place of residence.
My current home loan is with ING.
I have got unconditional approval from NAB for my new ppor and I will
be settling in late June.
I went to see an accountant this morning who advised me that I should
think about consolidating ING loan to NAB before renting it out.
According to him, if i consolidate the loans, as there could me tax
advantages with this strategy as I should be able to borrow more
when converting my ING loan to NAB as the value of my house has
increased. SO I woule be paying less interest on my new PPOR and more
interest on my investment property. The idea is to maximise the tax
deductions on investment proprety.
This is bit too confusing for a novice like me..Can one of the experienced
members here tell me whether this is possible and if yes give me a bit
more explain as to how would i be able to achieve this?
Thanks.
I intend to convert my current place of residence to investment property as
I have purchased a bigger house which will be my new place of residence.
My current home loan is with ING.
I have got unconditional approval from NAB for my new ppor and I will
be settling in late June.
I went to see an accountant this morning who advised me that I should
think about consolidating ING loan to NAB before renting it out.
According to him, if i consolidate the loans, as there could me tax
advantages with this strategy as I should be able to borrow more
when converting my ING loan to NAB as the value of my house has
increased. SO I woule be paying less interest on my new PPOR and more
interest on my investment property. The idea is to maximise the tax
deductions on investment proprety.
This is bit too confusing for a novice like me..Can one of the experienced
members here tell me whether this is possible and if yes give me a bit
more explain as to how would i be able to achieve this?
Thanks.