Hi All,
I would appreciate your advice on the below loan structure for a 300K loan, for a $530K IP. I don't have any other mortgages.
LOAN STRUCTURE
STRATEGY FOR MINIMISING CAPITAL-GAINS TAX
My tax-lawyer friend advised that it would be a good idea to let go of the existing tenant, move into the IP for a month, and find a new tenant afterwards, in order to avoid CGT when the unit is eventually sold (which won't be for another decade or more). Thoughts?
I would appreciate your advice on the below loan structure for a 300K loan, for a $530K IP. I don't have any other mortgages.
LOAN STRUCTURE
- 4.55% "choice package" with NAB (has redraw & offset features)
- Will choose variable interest rate (but might fix half at 4.55% for 5 years - still undecided)
- Will choose an Interest-Only loan, but will make extra repayments on the principle each month (especially while rates are low). My reasoning is that if it ever gets hard to repay the loan, I can fall back to paying the monthly Interest-Only commitment
STRATEGY FOR MINIMISING CAPITAL-GAINS TAX
My tax-lawyer friend advised that it would be a good idea to let go of the existing tenant, move into the IP for a month, and find a new tenant afterwards, in order to avoid CGT when the unit is eventually sold (which won't be for another decade or more). Thoughts?