Hi Folks
Just wondering if a broker or accountant can provide some advice. I have a PPoR and am looking to purchase an investment property and complete a subdivision - building at the rear of an existing house and selling the new home after.
My current loan is a 80% interest only with offset account.
I was wondering what the best way to structure the new loan for the investment property is?
I would like to maintain flexibility to be able to move into one of the houses on the investment property in the future. My bank manager suggested that I pay all the money I have in the offset account into the loan on my PPOR then they can draw down a separate loan of 100% on the investment property.
This would be good from a tax deductibility perspective, but would make the PPoR useless as a future investment with principle paid down.
Any thought would be greatly Appreciated.
Thanks
House chopper
Just wondering if a broker or accountant can provide some advice. I have a PPoR and am looking to purchase an investment property and complete a subdivision - building at the rear of an existing house and selling the new home after.
My current loan is a 80% interest only with offset account.
I was wondering what the best way to structure the new loan for the investment property is?
I would like to maintain flexibility to be able to move into one of the houses on the investment property in the future. My bank manager suggested that I pay all the money I have in the offset account into the loan on my PPOR then they can draw down a separate loan of 100% on the investment property.
This would be good from a tax deductibility perspective, but would make the PPoR useless as a future investment with principle paid down.
Any thought would be greatly Appreciated.
Thanks
House chopper