PPOR to IP

[chb]

Hi All,

Living in my current PPOR for 3 years now, didn't plan on moving but looks like we will be in the near future. The place has both the wife and my name on it.

The catch is she received money from her parents which she is currently paying back and I borrowed about 200K P+I. The place is probably worth about 500K.

I've been lucky enough to receive money from my parents as well and have paid that down to basically nothing. The loan has a redraw option.

Have I shot myself in the foot with converting it to an IP? Will I only be able to tax deduct around 200K? and even that is shared between the wife and myself?

 

[Aaron_C]

Yep thats right. Maybe what you should do is a spousal sale to regear the IP and maximise the debt again.

 

[Rolf Latham]

have a chat with Micheal from House of Wealth

www.houseofwealth.com.au


they may be able to set up transfer to a trust at a fraction of the normal transfer cost, thus allowing a full 105% regearing of the old PPOR

ta
rolf

 

[Terry_w]

You could purchase spouse's share for full market value and borrow to do so. Interest may be deductible if you do it properly and there would probably be no CGT or stamp duty.

 

[chb]

Thanks for all the tips guys

Might be turning the place into a DHA home soon, pending the offer..

So will definitely need to weigh up those options!