Hi, currently I have 2 investment property (A & B) which is positively gear. so I plan to make this 2 property to become negative gear to reduce my tax.
My idea is to refinance this 2 property and withdraw the money and use it either.
1. Buy another investment property ( C ) & make it owner occupy after 1 or 2 years.
The problem what happen with the interest after the property ( C ) becomes owner occupy & the loan are come from investment property (A & B).
Can I still claim the interest in investment property for the money that use in owner occupy property.
I think ATO check the first intention, If it true, It means I can claim the interest for the withdraw of investment property.
2. Leave the money in my loan account and use the money to pay the interest.
So after few year the investment property becomes negatively gear & I received all the money from rental without any expenses.
Do you think any of the above approach can work ?
My idea is to refinance this 2 property and withdraw the money and use it either.
1. Buy another investment property ( C ) & make it owner occupy after 1 or 2 years.
The problem what happen with the interest after the property ( C ) becomes owner occupy & the loan are come from investment property (A & B).
Can I still claim the interest in investment property for the money that use in owner occupy property.
I think ATO check the first intention, If it true, It means I can claim the interest for the withdraw of investment property.
2. Leave the money in my loan account and use the money to pay the interest.
So after few year the investment property becomes negatively gear & I received all the money from rental without any expenses.
Do you think any of the above approach can work ?