In 2011, being young, naive, less educated and on 'advice' from family, I put down a deposit on an overseas (India) investment OTP of total $80k. It is due for completion later this year.
Till date, I have paid ~$55k in cash on this property as it gets completed in various stages of its build. So there is still approximately ~$25k left owing on it until possession.
The property has grown in value by approximately 20% since 2011 and I expect to see growth the longer I hold on to it.
I have avoided taking an overseas bank loan since the interest rate there is approximately 11%, complications involving monthly overseas loan repayments and lengthy paperwork.
I am sick of paying for this property in cash as in the last 3 years I have learnt how important it is to have cash in hand for future investments and in general. Saying that, I do have a good savings base inspite of the overseas OTP and local purchase.
In hindsight I should have had a look at a better way to finance this purchase and my lack of knowledge back then is coming back to bite me.
Since then, I have also bought a property here in Australia for $450k on a 95% loan current value approximately $520k.
I am a bit confused on how to best finance the rest of this property.
Can I use the equity from my australian property to cover for the $25k remaining on the overseas purchase? Is it wise to use the equity on an overseas asset? What would be the tax implications on an overseas asset funded by an australian bank.
If anyone has gone through this kind of a situation, any advice would be appreciated At times I regret the purchase just because I had no vision for it when I bought it, but hope the learnings from this purcahse will help me in future buys.
Till date, I have paid ~$55k in cash on this property as it gets completed in various stages of its build. So there is still approximately ~$25k left owing on it until possession.
The property has grown in value by approximately 20% since 2011 and I expect to see growth the longer I hold on to it.
I have avoided taking an overseas bank loan since the interest rate there is approximately 11%, complications involving monthly overseas loan repayments and lengthy paperwork.
I am sick of paying for this property in cash as in the last 3 years I have learnt how important it is to have cash in hand for future investments and in general. Saying that, I do have a good savings base inspite of the overseas OTP and local purchase.
In hindsight I should have had a look at a better way to finance this purchase and my lack of knowledge back then is coming back to bite me.
Since then, I have also bought a property here in Australia for $450k on a 95% loan current value approximately $520k.
I am a bit confused on how to best finance the rest of this property.
Can I use the equity from my australian property to cover for the $25k remaining on the overseas purchase? Is it wise to use the equity on an overseas asset? What would be the tax implications on an overseas asset funded by an australian bank.
If anyone has gone through this kind of a situation, any advice would be appreciated At times I regret the purchase just because I had no vision for it when I bought it, but hope the learnings from this purcahse will help me in future buys.