Hi
I have this situation and not sure I am doing the right thing
I bought my PPOR (a unit and we call it Property A) in 2007 and the home loan amount is 200k in P+I. On 1-Oct-14, the principal is only 70k. On 1-Nov-14, I refinance my PPOR and I borrow 400k which I have 330k can be redrawn.
On 5-Dec-14, I bought an investment property (a house and we call it Property B) which is 760k. BUT I change my mind and want to move into this house.
What I did so far --
- I redraw $76,000 for signing the sales contract.
- I know that I need to redraw another 10%($76,000) plus $40,000 stamp duty and I will take it from my redraw account
What I am going to do is redraw all remaining $138,000 (330k-76k-76k-40k) in redraw account and put it to the new loan of Property B.
Therefore, my property A has 400k loan and then rent it out. The rental income will not cover the interest so that I can claim negative gearing from the Property A which is my PPOR
My friend said it is legal to refinance old PPOR, draw the money to the new PPOR and then claim for negative gearing from old PPOR.
Am I right? Thanks!!
I have this situation and not sure I am doing the right thing
I bought my PPOR (a unit and we call it Property A) in 2007 and the home loan amount is 200k in P+I. On 1-Oct-14, the principal is only 70k. On 1-Nov-14, I refinance my PPOR and I borrow 400k which I have 330k can be redrawn.
On 5-Dec-14, I bought an investment property (a house and we call it Property B) which is 760k. BUT I change my mind and want to move into this house.
What I did so far --
- I redraw $76,000 for signing the sales contract.
- I know that I need to redraw another 10%($76,000) plus $40,000 stamp duty and I will take it from my redraw account
What I am going to do is redraw all remaining $138,000 (330k-76k-76k-40k) in redraw account and put it to the new loan of Property B.
Therefore, my property A has 400k loan and then rent it out. The rental income will not cover the interest so that I can claim negative gearing from the Property A which is my PPOR
My friend said it is legal to refinance old PPOR, draw the money to the new PPOR and then claim for negative gearing from old PPOR.
Am I right? Thanks!!