Fraught with danger

From: Darren Beech


i read an old post the other day that suggested turning your PPOR into an IP is fraught with danger,can anyone expand on this please?
 
Last edited by a moderator:
Reply: 1
From: Simon and Julie M


Hi Darren
It all comes down to the way one thinks about their home(PPOR) ie. How much personal and emotional value is placed on it.
Some may see it as just pure equity while at the other end of the scale it may be viewed with emotion ie family ties ect.
Bearing this in mind there could be real dangers if emotion can not be separated from the equation.
Kind regards
Simon
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2
From: Anonymous


The major problem as I understand is that if you have any finance on your PPOR and you then rent it out the taxman won't allow interest payments as deductions as he will argue that the original purpose of the loan on your PPOR was not for "investment or business purposes" Check it out with your accountant.
 
Last edited by a moderator:

Sim

Administrator
Reply: 2.1
From: Sim' Hampel


We've already had this argument and dispelled this myth. Search the archives.

 
Last edited:
Reply: 2.2
From: .watto .


Hi Sim,

In regards to this topic you said ...search the archives...

I have tried to find the associated threads but proving rather difficult. Can you point me in the right direction as my Brother and Sister in law have a PPOR that is now rented and need to draw out equity to purchase a PPOR in Brissie due to moving for work commitments.

Cheers
Watto
 
Last edited by a moderator:
Reply: 2.2.1
From: Les .



G'day Darren and Watto,

Search for the word "flash" in the Property Investor Forum. This leads to an entry "The Week that Was - 8-14/12/99" The word "flash" was from the title "A Blinding Flash of the Obvious"....

This gives the final word from me (the original author of the "fraught with danger" post) on the subject.

Unfortunately, I don't know how to recover the whole string from the original forum - otherwise I'd do it.

Perhaps Sim can help with "how to do this..."

I had replied to this already - but my reply has disappeared (???) Hope this makes it.

Regards,


Les


- "Eschew Obfuscation" - ;^)
 
Last edited by a moderator:
Top