From: Whittaker Hamilton
Currently Myself and my wife are living here in Australia and have our property up for sale so we can move back to NZ.
It appears it may be take a while to sell as the market has slowed down alot.
I was therefore thinking of my options should i wish to move back and rent it out.
I thought of a strategy but am after advice on if it would work and mean interest is fully tax deductable on my NZ return.
EXAMPLE:
Present place of residence (PPOR) Value $200K Loan $120K
Refinance to a offset account @ 80% Value giving borrowings of 160K in Loan and park 40K ( difference between original loan and new) in the off set account to reduce loan interest.
The 40K in offset account is accessable for a deposit on new PPOR in NZ later down track.
I would plan on getting a valuation done on property before i rented it out to satisfy NZ CGT should we sell down the track.
Also i realise the Aus financial institution would need to be recognised in NZ.
Just an idea to allow us to keep a great property and have access to equity for further purchases.
Currently Myself and my wife are living here in Australia and have our property up for sale so we can move back to NZ.
It appears it may be take a while to sell as the market has slowed down alot.
I was therefore thinking of my options should i wish to move back and rent it out.
I thought of a strategy but am after advice on if it would work and mean interest is fully tax deductable on my NZ return.
EXAMPLE:
Present place of residence (PPOR) Value $200K Loan $120K
Refinance to a offset account @ 80% Value giving borrowings of 160K in Loan and park 40K ( difference between original loan and new) in the off set account to reduce loan interest.
The 40K in offset account is accessable for a deposit on new PPOR in NZ later down track.
I would plan on getting a valuation done on property before i rented it out to satisfy NZ CGT should we sell down the track.
Also i realise the Aus financial institution would need to be recognised in NZ.
Just an idea to allow us to keep a great property and have access to equity for further purchases.
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