Just a quick one regarding a triplex block I bought, I am concerned about the exit strategy with regards to making the whole lot tax deductable as I want to hold and rent them.
I want to use my Unit as security, build and create the 20% equity and then get the title back so I can go again. I am confident of creating the equity after the build, I have done it this way before.
The other option is, get a LOC on the Unit, use the cash from this as a deposit so the banks don?t have too much control.
I understand using the LOC, but doing it this way I would have to pay interest on it, refinance at the end of the build to get cash out and pay back the LOC so I can go again.
So my question is, if I use an LOC will the tax department view this as me paying off some of the mortgage and then taking it back, similar to using a redraw instead of an offset account ?
I want to use my Unit as security, build and create the 20% equity and then get the title back so I can go again. I am confident of creating the equity after the build, I have done it this way before.
The other option is, get a LOC on the Unit, use the cash from this as a deposit so the banks don?t have too much control.
I understand using the LOC, but doing it this way I would have to pay interest on it, refinance at the end of the build to get cash out and pay back the LOC so I can go again.
So my question is, if I use an LOC will the tax department view this as me paying off some of the mortgage and then taking it back, similar to using a redraw instead of an offset account ?