PPOR upgrade finance options

[philh]

Hi
I am after some finance statagies to upgrade our PPOR . Currently we have a few IP's in different states for five or so years.
Without selling our IP's to release the equity we would have to get a loan (Bad Debt) which we don't currently have at all (its all good debt) to purchase our new PPOR.
The rents have all gone up which has made our IP's self sufficent (just).
We have out grown our PPOR and need to upgrade . How can we do this without selling any IP's and not incurring any bad debt?
We have a discretionary trust set up but no IP's in it yet .I thought of selling to the trust but Im not sure how this would work. All Ip's are in single names (mine).

Any help would be appreciated
Thanks

 

[tobe]

1, but a PPOR now, but rent it out for the first year or two before moving in and making it bad debt. Hopefull by this stage your other rental income has increased, so it becomes more affordable.
2, have your trust buy the PPOR and rent from the trust, this does make it good debt, I'm not expert but Id expect the ATO may think it a tad contrived.
3, buy and move into new PPOR and use the debt recycling strategies outlined in other threads to capitalise good debt while paying down bad.
4, rent instead of buy your PPOR, until you can afford to buy it with a small loan, or until you get sick of dealing with managing agents etc etc.
5 sell the lot, buy a new PPOR outright and start again with the IPs. Huge cost in Stamp Duty and R/E fees, but no bad debt....


I favour no 1 myself, though it makes it hard if you have to move now...

 

[philh]

Thanks tobe
something to think about