From: Geoff Donges
gad
G'day fellow Property investors
Seeking opinions, not advice. My situation:
At the time the mortgage on my PPOR was down to $45 with 92G available in the redraw facility.
Bought IP1 in Dec, 2br unit in Canberra, borrowed 90% & used redraw from PPOR mortgage for 10% deposit & costs ((interest claimable as for IP, I believe)(no costs for using redraw)).
I will have the mortgage on PPOR back to $0 before purchasing IP2 in early new financial year.
Question: If I did this again for IP3 while still paying down the redraw for IP2, would I need to keep the interest being paid on the redraw's separate for tax reasons or not? (All the interest on the redraw's would be for IP's & I believe it would be very difficult for me to separate the proportional amounts of interest for each redraw).
OR
Would it be better to discharge the PPOR mortgage then get a LOC set up on 80% of PPOR? I don't know anything about LOC's but I assume it would be no different from using the redraw facility unless you can keep the different redraw's/drawdown's(?) separate for each IP, if that's the answer to the above question.
My loans have been with one of the "Mortgage Originators" as Jan Somers calls them & I don't know if they do LOC's, so then I would probably have to use my Traditional Bank for this option.
Any & all opinions welcome, thanks.
gad
G'day fellow Property investors
Seeking opinions, not advice. My situation:
At the time the mortgage on my PPOR was down to $45 with 92G available in the redraw facility.
Bought IP1 in Dec, 2br unit in Canberra, borrowed 90% & used redraw from PPOR mortgage for 10% deposit & costs ((interest claimable as for IP, I believe)(no costs for using redraw)).
I will have the mortgage on PPOR back to $0 before purchasing IP2 in early new financial year.
Question: If I did this again for IP3 while still paying down the redraw for IP2, would I need to keep the interest being paid on the redraw's separate for tax reasons or not? (All the interest on the redraw's would be for IP's & I believe it would be very difficult for me to separate the proportional amounts of interest for each redraw).
OR
Would it be better to discharge the PPOR mortgage then get a LOC set up on 80% of PPOR? I don't know anything about LOC's but I assume it would be no different from using the redraw facility unless you can keep the different redraw's/drawdown's(?) separate for each IP, if that's the answer to the above question.
My loans have been with one of the "Mortgage Originators" as Jan Somers calls them & I don't know if they do LOC's, so then I would probably have to use my Traditional Bank for this option.
Any & all opinions welcome, thanks.
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