link loans

[DPM]

Would appreciate peoples opinion on link loans. Correct me if I'm wrong that this pays for a couple of IP's while paying off your PPOR quicker.
Is there risks? I'm aware that you can't claim the capitalised interest as a tax deduction, but that seems minimal to the benifits.

Thanks.

 

[Simon]

Link loans isn't a term used here.

Can you explain exactly what you mean before I comment?

 

[Rolf Latham]

Hiya

Link aka Split loan as in Harts vs ATO I suspect.

Depending on the structure and the commercial reasoning, yes these things can work, and if you have a brave tax adviser you may also be able to claim the capped interest.

If you are grey about that then there are other ways of killing of PPOR debt more quickly as well.

ta
rolf