This sounds like a silly question however I must ask it, might save a few hassles and account keeping fees. I am in the process of getting my IP's valued inorder to release some equity (hopefully) is it possible for me to put the equity into my PPOR for a short period of time until I get my next IP loan? Or should I set up a redraw account against one of the IP loans?
Placing IP equity into my PPOR LOC?
- Thread starter Jenko
- Start date
Hiya
Mixing borrowed and tax paid personal funds and borrowings will likely have tax implications.
keep them separate in - redraw in IP loan sounds a good option
ta
rolf
What do you mean by "put the equity"?
If you are borrowing and parking money, be careful as you could break the direct connection.
If you are increasing a LOC then this is fine as long as you
1. don't mix borrowed and non borrowed money or
2. Investment and non investment borrowings.
I meant if I wanted to have some money in a account to say use as a deposit for an IP bought at auction.
If I have my ip's valued and then get the equity by topping up the loans then sit that money in an offsett account until I purchase another IP.
I kind of knew I couldn't put the funds in my PPOR LOC but had to check.
If I have my ip's valued and then get the equity by topping up the loans then sit that money in an offsett account until I purchase another IP.
I kind of knew I couldn't put the funds in my PPOR LOC but had to check.
No, interest will probably not be deductible if you do that.
The moment you move the money from the LOC account (the released "equity") you'll pay interest on it. The interest on this LOC will most likely be higher than the interest in your PPOR.
