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Anonymous
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From: Anonymous
Hi everyone,
I hope this question doesn't sound silly. Here goes...
My husband and I are currently living in and paying off our own flat. We have this plan to move out soon and rent our flat. We will then also rent ourselves, and will be able to claim 25% of the rent we pay on our tax return (so our accountant tells us) because my husband's company has set him up with a home office. In this way, we should be better off in the sense that we'll have more income to invest elsewhere.
The basic plan is to acquire as many growth assets (property and shares) as possible in 6 years from moving out of our flat. After that, we'll sell the flat (CGT free) and use the cash as a deposit for our
"dream home". But we'll leave those assets we acquired alone and let them just continue to grow (or add to them if possible).
Initially, we'll be using the equity built up in our flat to borrow money to acquire growth assets. My question is this...in 6 years time when we sell our first flat, what happens to the investment loan we took out against the flat? eg say I borrowed $100k as a line of credit against the flat to pay for the deposit for another property, or to buy shares. Once I sell the flat, do I have to repay this $100k as the asset which was "backing" the loan has now been sold?
I hope this makes sense.
Amy
PS Sorry to post as Anonymous, but I didn't want to give out my email address and get annoying junk mail.
Hi everyone,
I hope this question doesn't sound silly. Here goes...
My husband and I are currently living in and paying off our own flat. We have this plan to move out soon and rent our flat. We will then also rent ourselves, and will be able to claim 25% of the rent we pay on our tax return (so our accountant tells us) because my husband's company has set him up with a home office. In this way, we should be better off in the sense that we'll have more income to invest elsewhere.
The basic plan is to acquire as many growth assets (property and shares) as possible in 6 years from moving out of our flat. After that, we'll sell the flat (CGT free) and use the cash as a deposit for our
"dream home". But we'll leave those assets we acquired alone and let them just continue to grow (or add to them if possible).
Initially, we'll be using the equity built up in our flat to borrow money to acquire growth assets. My question is this...in 6 years time when we sell our first flat, what happens to the investment loan we took out against the flat? eg say I borrowed $100k as a line of credit against the flat to pay for the deposit for another property, or to buy shares. Once I sell the flat, do I have to repay this $100k as the asset which was "backing" the loan has now been sold?
I hope this makes sense.
Amy
PS Sorry to post as Anonymous, but I didn't want to give out my email address and get annoying junk mail.
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