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From: Steve Kiddle
Typically, most people using their existing properties as security for a loan will purchase an IP for say $250K and take out an I/O loan for $265K to cover all borrowing expenses, stamp duty etc.
This loan is about 106% of the property value on which the interest is fully tax deductible, as I understand.
Is there a set limit on the loan value for an IP as far as the ATO is concerned as I am considering taking out the loan for say $270K and using the small surplus to pay the first few years of costs (net after tax etc)
Thanks for your input people
Typically, most people using their existing properties as security for a loan will purchase an IP for say $250K and take out an I/O loan for $265K to cover all borrowing expenses, stamp duty etc.
This loan is about 106% of the property value on which the interest is fully tax deductible, as I understand.
Is there a set limit on the loan value for an IP as far as the ATO is concerned as I am considering taking out the loan for say $270K and using the small surplus to pay the first few years of costs (net after tax etc)
Thanks for your input people
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