Hi
We have outgrown our 15.5sq PPOR and looking at a larger house as the current one we are in served us well when it was DINK. We are wanting to buy a larger house for our PPOR and possibly keep our existing one and rent it out as an IP. We have not discharged our mortgage (line of credit), it is paid off (currently in credit) but bank has said in the past we can keep it ($12 a month fees)
If we do rent out our existing house, can we negative gear it? Been told by the bank we can draw on our existing line of credit/funds (abt 200k) and get a second mortgage over the "new house" and put that existing line of credit/funds (abt 200k) from first mortgage and what ever savings we have into it.
Qsts
Can we -ve gear our existing PPOR as an IP if we use the above scenario?
Is this all possible?
In this scenario would I need 2 mortgages? Guess u can transfer one to the other (as the mortgage is over the existing house)
Not after expert advise or hold anyone to what they say. Have to speak to the bank and an accountant when time permits, just thought I would get the ball rolling.....
We have outgrown our 15.5sq PPOR and looking at a larger house as the current one we are in served us well when it was DINK. We are wanting to buy a larger house for our PPOR and possibly keep our existing one and rent it out as an IP. We have not discharged our mortgage (line of credit), it is paid off (currently in credit) but bank has said in the past we can keep it ($12 a month fees)
If we do rent out our existing house, can we negative gear it? Been told by the bank we can draw on our existing line of credit/funds (abt 200k) and get a second mortgage over the "new house" and put that existing line of credit/funds (abt 200k) from first mortgage and what ever savings we have into it.
Qsts
Can we -ve gear our existing PPOR as an IP if we use the above scenario?
Is this all possible?
In this scenario would I need 2 mortgages? Guess u can transfer one to the other (as the mortgage is over the existing house)
Not after expert advise or hold anyone to what they say. Have to speak to the bank and an accountant when time permits, just thought I would get the ball rolling.....