Noob question....
I want to achieve 2 things in the next 18 months. Buy my first IP & relocate us to a better suburb (driven by a few things but primarily better school zone before son starts school 2016).
I was thinking that I could convert PPOR to IP, pull a bunch of $ out of it & then buy. PPOR is in a good area for growth & very rentable. (NSW)
Having just spoken briefly to my finance guy he's saying that if I pull money out of PPOR only the current loan amount will be tax deductible and that if I go into LMI territory the insurance wont be tax deductible either. Is this right? I was thinking that it would be smarter to do that rather than incur selling / buying costs on another property. But if he's right I might be better off selling then buying a new IP & a new PPOR. Unfortunately don't yet have enough equity to avoid LMI on 2 properties....well not where I was thinking of buying anyway.
Talking again next week / getting valuations etc
I want to achieve 2 things in the next 18 months. Buy my first IP & relocate us to a better suburb (driven by a few things but primarily better school zone before son starts school 2016).
I was thinking that I could convert PPOR to IP, pull a bunch of $ out of it & then buy. PPOR is in a good area for growth & very rentable. (NSW)
Having just spoken briefly to my finance guy he's saying that if I pull money out of PPOR only the current loan amount will be tax deductible and that if I go into LMI territory the insurance wont be tax deductible either. Is this right? I was thinking that it would be smarter to do that rather than incur selling / buying costs on another property. But if he's right I might be better off selling then buying a new IP & a new PPOR. Unfortunately don't yet have enough equity to avoid LMI on 2 properties....well not where I was thinking of buying anyway.
Talking again next week / getting valuations etc