A
Anonymous
Guest
From: Anonymous
Hi everyone,
I am currently paying off my flat with a variable rate, P&I home loan with a redraw facility. Once we pay off this home, we'd like to convert it into an IP, and buy a new PPOR. We'd like to keep the flat as an IP rather than sell it because it is actually a very good investment property. I have $155k left to pay off, which should be achieved by mid 2006.
I'm thinking of refinancing the loan to an offset account loan. Then when we want to buy the new PPOR, we use the money accumulated in the offset account for a deposit. That way, the money still remaining on my flat will then be tax deductible (since the flat will become an IP). It seems with this strategy that we'd achieve our goals of buying a new PPOR as soon as possible plus keeping the current flat as an IP.
My questions are:
1.Does this seem like the best strategy? The only other strategies I can think of are to pay the flat outright and then save another deposit for a new PPOR. Or we could buy the new house now while still living in our flat, and rent out that house for a while.
2. Who do I talk to to get more advice on this matter - an accountant or a mortgage broker? Rolf, can you help?
Cheers
Anon
Hi everyone,
I am currently paying off my flat with a variable rate, P&I home loan with a redraw facility. Once we pay off this home, we'd like to convert it into an IP, and buy a new PPOR. We'd like to keep the flat as an IP rather than sell it because it is actually a very good investment property. I have $155k left to pay off, which should be achieved by mid 2006.
I'm thinking of refinancing the loan to an offset account loan. Then when we want to buy the new PPOR, we use the money accumulated in the offset account for a deposit. That way, the money still remaining on my flat will then be tax deductible (since the flat will become an IP). It seems with this strategy that we'd achieve our goals of buying a new PPOR as soon as possible plus keeping the current flat as an IP.
My questions are:
1.Does this seem like the best strategy? The only other strategies I can think of are to pay the flat outright and then save another deposit for a new PPOR. Or we could buy the new house now while still living in our flat, and rent out that house for a while.
2. Who do I talk to to get more advice on this matter - an accountant or a mortgage broker? Rolf, can you help?
Cheers
Anon
Last edited by a moderator: