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From: Jason Prestwidge
Has anyone tested the method of re gearing an IP every couple of years to take advantage of the capital gain as it comes, to help pay down the mortgage over your residential property?
For example; Say you own a home with a loan of 250K and an IP with a 220K loan.
After say three years we re value the IP at 250K so we re-borrow 100% of the value of the IP, we then pay down the home mortgage with the 30K funds, thus reducing our non tax deductible debt and increasing our tax deductible debt.
Presto
Has anyone tested the method of re gearing an IP every couple of years to take advantage of the capital gain as it comes, to help pay down the mortgage over your residential property?
For example; Say you own a home with a loan of 250K and an IP with a 220K loan.
After say three years we re value the IP at 250K so we re-borrow 100% of the value of the IP, we then pay down the home mortgage with the 30K funds, thus reducing our non tax deductible debt and increasing our tax deductible debt.
Presto
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