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Anonymous
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From: Anonymous
The following occurred to me last night as we look at the exercise of refinancing our investment portfolio.
We have most of our debt locked in at 3yrs, with around 18months to go, at 7.5%
The honeymoon rate offered by another institution will offset the break costs
The break costs are tax deductible
We will have a large rent excess due to the much lower payment (5.4% rather than 7.5%)
The excess rent could be used to reduce our own home mortgage for the 12month period
The net effect will be a lower home mortgage and higher investment property debt.
Have I just tax effectively moved equity from our investment properties into our own home?
Gilbert.
The following occurred to me last night as we look at the exercise of refinancing our investment portfolio.
We have most of our debt locked in at 3yrs, with around 18months to go, at 7.5%
The honeymoon rate offered by another institution will offset the break costs
The break costs are tax deductible
We will have a large rent excess due to the much lower payment (5.4% rather than 7.5%)
The excess rent could be used to reduce our own home mortgage for the 12month period
The net effect will be a lower home mortgage and higher investment property debt.
Have I just tax effectively moved equity from our investment properties into our own home?
Gilbert.
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