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From: Mike .
Next Move
From:
Date: 06 Oct 2000
Time: 13:33:08
I am looking for some options to move forward with my current situation, I have just paid off my mortgage on my home and the property was recently valued at $550K. I have an IP valued at $230K returning 220pw rent, and a share portfolio valued at 40K with mixed return. Both the IP and the Shares have an underlying loan of 260K.
While we have paid off the family home it has become too small and we need to move to a larger place, I know I will need to spend at least 250K more to achieve this (Sydney prices). This is fine but I wish to increase my Investment portfolio also.
I have thought of pulling the mortgage to the maximum on the current family home and converting this to a an IP and using this cash as a deposit on the new house. the problem with this approach is that I will not be able to generate a rental income on the this property to make it a pos cash flow IP. What other options do I have? Is this plan I have outlined legal, what would the ATO think?
Thanks in adavance
Next Move
From:
Date: 06 Oct 2000
Time: 13:33:08
I am looking for some options to move forward with my current situation, I have just paid off my mortgage on my home and the property was recently valued at $550K. I have an IP valued at $230K returning 220pw rent, and a share portfolio valued at 40K with mixed return. Both the IP and the Shares have an underlying loan of 260K.
While we have paid off the family home it has become too small and we need to move to a larger place, I know I will need to spend at least 250K more to achieve this (Sydney prices). This is fine but I wish to increase my Investment portfolio also.
I have thought of pulling the mortgage to the maximum on the current family home and converting this to a an IP and using this cash as a deposit on the new house. the problem with this approach is that I will not be able to generate a rental income on the this property to make it a pos cash flow IP. What other options do I have? Is this plan I have outlined legal, what would the ATO think?
Thanks in adavance
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