Hi All,
I've been lurking on the forums for a while but have finally decided to sign up.
I'm an investor almost more by circumstances rather than by design. I bought my first home a few years ago and subsequently found a lovely woman to couple up with who also owned her own home. When we moved into the house I own together we started renting her property out.
We are slowly playing catchup with structuring finances etc to get best value out of this setup.
We have decided that looking to the future we want to upgrade our PPoR. What has our head spinning is the best way to proceed. What we are looking to do boils down to the following:
1) Refinance both houses to release equity
2) Use equity and additional loan to purchase property 3.
3) *an idea i'm unsure of. Rent property 3 out for 6 months so that all funds on existing properties are tax deductible, then move in as PPoR
Here's where I'm a little stuck and need a bit of advise. Is step 3 required to get best tax benefits? (We are going to accountant to get professional advice, just with to get opinions of the wider audience) How would you best structure loans, IO on property 1 & 2 and P&I on 3? Who's currently fixing interest rates and who's variable? Benefits of each?
The figures:
Incomes:
$76,000 and $74,000
Property 1
Value: $420,000 approx
Loan: $270,000
Property 2
Value $520,000 approx
Loan $200,000
Rental income $420 PW
Proposed Property 3
Value: Up to $650,000.
I've been lurking on the forums for a while but have finally decided to sign up.
I'm an investor almost more by circumstances rather than by design. I bought my first home a few years ago and subsequently found a lovely woman to couple up with who also owned her own home. When we moved into the house I own together we started renting her property out.
We are slowly playing catchup with structuring finances etc to get best value out of this setup.
We have decided that looking to the future we want to upgrade our PPoR. What has our head spinning is the best way to proceed. What we are looking to do boils down to the following:
1) Refinance both houses to release equity
2) Use equity and additional loan to purchase property 3.
3) *an idea i'm unsure of. Rent property 3 out for 6 months so that all funds on existing properties are tax deductible, then move in as PPoR
Here's where I'm a little stuck and need a bit of advise. Is step 3 required to get best tax benefits? (We are going to accountant to get professional advice, just with to get opinions of the wider audience) How would you best structure loans, IO on property 1 & 2 and P&I on 3? Who's currently fixing interest rates and who's variable? Benefits of each?
The figures:
Incomes:
$76,000 and $74,000
Property 1
Value: $420,000 approx
Loan: $270,000
Property 2
Value $520,000 approx
Loan $200,000
Rental income $420 PW
Proposed Property 3
Value: Up to $650,000.