Hi SS,
Would really appreciate any advice to help me on my current situation.
Just for background, I currently have a unit as my PPOR (410K) with 163K I/O loan outstanding. I am now in the process of upgrading to purchase a house to be my new PPOR ? value up to 600K.
I will convert my current PPOR to an IP and use the available equity (approx. 195K) as part of the purchase of my new PPOR.
Would the below be the correct way to structure my loans moving forward:
? Loan A: 163K ? Existing unit to be IP
? Loan B: 125K ? LOC 20% Equity for new PPOR
? Loan C: 475K ? 80% Loan on new PPOR
? Loan D (potential): Use remaining LOC (70K) Equity to purchase IP2 (making sure I separate this portion to Loan B)
Also since Loan B is to be used to fund the purchase of a PPOR, am I right in that only Loan C is the portion I am able to claim if I was to turn this place to an IP in the future ?
Many thanks !
Would really appreciate any advice to help me on my current situation.
Just for background, I currently have a unit as my PPOR (410K) with 163K I/O loan outstanding. I am now in the process of upgrading to purchase a house to be my new PPOR ? value up to 600K.
I will convert my current PPOR to an IP and use the available equity (approx. 195K) as part of the purchase of my new PPOR.
Would the below be the correct way to structure my loans moving forward:
? Loan A: 163K ? Existing unit to be IP
? Loan B: 125K ? LOC 20% Equity for new PPOR
? Loan C: 475K ? 80% Loan on new PPOR
? Loan D (potential): Use remaining LOC (70K) Equity to purchase IP2 (making sure I separate this portion to Loan B)
Also since Loan B is to be used to fund the purchase of a PPOR, am I right in that only Loan C is the portion I am able to claim if I was to turn this place to an IP in the future ?
Many thanks !