I think I'll be wanting to purchase a PPOR in the next 12-18 months. The only issue is that I don't anticipate to have a large cash amount (35-40k). I do however expect to have a bit of equity from two IPs.
From my understanding though, I'd be contaminating my loans as I would not be able to claim the interest on the equity loan amount as its use is not for investment purposes.
Is there anyway around this? My first thought would be to perhaps invest the amount in shares first, and then sell the shares a short time later to use as a deposit. CGT would be minimal, if any, and i'd assume the benefits of being able to claim the interest would offset the one off costs of trading (or am i missing something here?)
Any other possible solutions?
From my understanding though, I'd be contaminating my loans as I would not be able to claim the interest on the equity loan amount as its use is not for investment purposes.
Is there anyway around this? My first thought would be to perhaps invest the amount in shares first, and then sell the shares a short time later to use as a deposit. CGT would be minimal, if any, and i'd assume the benefits of being able to claim the interest would offset the one off costs of trading (or am i missing something here?)
Any other possible solutions?