Hi
My first post after lurking as a guest for a long time
I have an 809 Sqm block in Brisbane that is on 2 405 Sqm lots. Currently it's my PPR.
My plan is to demolish the existing residence & build 2 new houses, one investment purposes & one for my new PPR
My existing debt is equal to the value of one of the 405sqm lots, say $300k. equity is therefore $300k which implies that I own the other lot own outright.
Assuming I build one house on one of the lots for investment purposes, for taxation purposes can I claim the build cost + 100% of the outstanding debt (300k)? I would expect total debt to be circa 90% LVR
Would the process be more straightforward if I got an separate loan solely for the investment property?
Cheers
My first post after lurking as a guest for a long time
I have an 809 Sqm block in Brisbane that is on 2 405 Sqm lots. Currently it's my PPR.
My plan is to demolish the existing residence & build 2 new houses, one investment purposes & one for my new PPR
My existing debt is equal to the value of one of the 405sqm lots, say $300k. equity is therefore $300k which implies that I own the other lot own outright.
Assuming I build one house on one of the lots for investment purposes, for taxation purposes can I claim the build cost + 100% of the outstanding debt (300k)? I would expect total debt to be circa 90% LVR
Would the process be more straightforward if I got an separate loan solely for the investment property?
Cheers