Hi I'm moved from Brisbane to North Queensland and now my principal place of residence in Brisbane I want to convert into an investment property but I want to buy another principal place of residence in North Qld. The balance on the loan of my Brisbane PPOR is almost zero as I wanted to have this cash available to me in case i needed it (without closing the loan altogether).
If I refinance my Brisbane PPOR to $600,000 and use that $600,000 towards a PPOR in North Qld, and start renting out Brisbane as an IP, is it correct that I am not able to claim the interest paid on my Brisbane IP as the funds are not used for investment purposes, even though the security (ie the Brisbane IP) is an investment?
The new PPOR in North Qld will not be mortgaged.
However, if I used the refinanced $600,000 towards a managed fund, then I could claim the interest as a tax deduction as this money is being used for an investment?
thanks,
Daniel.
If I refinance my Brisbane PPOR to $600,000 and use that $600,000 towards a PPOR in North Qld, and start renting out Brisbane as an IP, is it correct that I am not able to claim the interest paid on my Brisbane IP as the funds are not used for investment purposes, even though the security (ie the Brisbane IP) is an investment?
The new PPOR in North Qld will not be mortgaged.
However, if I used the refinanced $600,000 towards a managed fund, then I could claim the interest as a tax deduction as this money is being used for an investment?
thanks,
Daniel.