Hi everyone. I'm new.
I was hoping to get some advice about purchasing/funding an IP and rebuilding a house I already own.
The house
I bought this 6 years ago for 750K. It was rented for 4 years, then I moved into it. Probably a bit messy tax-wise I guess, but it made sense at the time. I'm looking to knockdown and rebuild in order for it to become my main residence. Probably cost around 500K.
I owe nothing on the house, but the loan still exists and I can redraw $160K.
The IP
I'm looking to buy an IP for around 400-450K. Apart from the investment, it would also be handy to have a place to live while the house is being rebuilt.
I could buy this with other funds and the redraw (from the house) in order to buy a preferred property quickly. I was thinking of then refinancing, if that makes sense to put the loan on to the IP.
Financing
I guess I'm asking for ideas on how best to fund/structure the purchase of the IP and then move onto funding a construction loan for the house within a period of a year. And if there is a way to do it that makes it tax effective.
And then move onto the next IP.
Thanks for any advice.
I was hoping to get some advice about purchasing/funding an IP and rebuilding a house I already own.
The house
I bought this 6 years ago for 750K. It was rented for 4 years, then I moved into it. Probably a bit messy tax-wise I guess, but it made sense at the time. I'm looking to knockdown and rebuild in order for it to become my main residence. Probably cost around 500K.
I owe nothing on the house, but the loan still exists and I can redraw $160K.
The IP
I'm looking to buy an IP for around 400-450K. Apart from the investment, it would also be handy to have a place to live while the house is being rebuilt.
I could buy this with other funds and the redraw (from the house) in order to buy a preferred property quickly. I was thinking of then refinancing, if that makes sense to put the loan on to the IP.
Financing
I guess I'm asking for ideas on how best to fund/structure the purchase of the IP and then move onto funding a construction loan for the house within a period of a year. And if there is a way to do it that makes it tax effective.
And then move onto the next IP.
Thanks for any advice.