Hello all. I just registered today and this is my first post. I have so far found this forum to be like a good book, I'm having trouble pulling myself away from the screen! I wish to maybe tap into some of the wealth of knowledge out there to maximise my IP situation.
My situation is this.
Myself and my wife are wanting to renovate our PPOR. To do this we're wanting to refinance. Going by local sales and a real estate agents opinion, we estimate the house, as is, to be valued at around 230 to 250,000 and we currently owe 145,000 on the mortgage. I jointly own an IP with my brother. Neither of us has ever had any idea about how to best control the finances relating to the property (ofcourse in hindsight we should have done something about that fact years ago!
), but for better or worse we now actually only owe 700 dollars or something rediculas after only 8 years of a 20 year loan term. (The bank sudgested not fully paying it out to leave our options open). We bought the property for 56,000 and it is currently worth around 120,000 and we're getting 120 per week rent (which go's into an account that neither of us touch and has currently around 2000 in it) from an excellent tenant who is extremely happy to stay. Both my brother and I are wanting some money at the moment (him to go towards a badly needed new car and me to kick start the reno's). He tells me the bank will allow us to redraw around 22,000 on the current loan, so we're thinking 10,000 each, but I'm a bit hesidant about whether or not this is a good idea. My thoughts are that because we're not using the money for investment then the interest won't be tax deductable. But bro seems to think that because it is still an investment property loan then the interest must be tax deductable. .
We're both wanting to do things the best way because we're both interested in buying more IP's seperately. Bro also is paying off his own PPOR.
If anyone out there could push us in the right direction it would be greatly appreciated. Hope I haven't confused anyone.
Thanks in advance and look forward to reading some more of the interesting stories and advice, and hope I can also one day give someone else a shove in the right direction.
P.S. I live in Newcastle NSW and am currently looking for a financial advisor or accountant that specialising in IP's if anyone could recommend one (my current accountant just seems to want me to sell the IP and invest in his Bonds.)
My situation is this.
Myself and my wife are wanting to renovate our PPOR. To do this we're wanting to refinance. Going by local sales and a real estate agents opinion, we estimate the house, as is, to be valued at around 230 to 250,000 and we currently owe 145,000 on the mortgage. I jointly own an IP with my brother. Neither of us has ever had any idea about how to best control the finances relating to the property (ofcourse in hindsight we should have done something about that fact years ago!
), but for better or worse we now actually only owe 700 dollars or something rediculas after only 8 years of a 20 year loan term. (The bank sudgested not fully paying it out to leave our options open). We bought the property for 56,000 and it is currently worth around 120,000 and we're getting 120 per week rent (which go's into an account that neither of us touch and has currently around 2000 in it) from an excellent tenant who is extremely happy to stay. Both my brother and I are wanting some money at the moment (him to go towards a badly needed new car and me to kick start the reno's). He tells me the bank will allow us to redraw around 22,000 on the current loan, so we're thinking 10,000 each, but I'm a bit hesidant about whether or not this is a good idea. My thoughts are that because we're not using the money for investment then the interest won't be tax deductable. But bro seems to think that because it is still an investment property loan then the interest must be tax deductable. .We're both wanting to do things the best way because we're both interested in buying more IP's seperately. Bro also is paying off his own PPOR.
If anyone out there could push us in the right direction it would be greatly appreciated. Hope I haven't confused anyone.
Thanks in advance and look forward to reading some more of the interesting stories and advice, and hope I can also one day give someone else a shove in the right direction.
P.S. I live in Newcastle NSW and am currently looking for a financial advisor or accountant that specialising in IP's if anyone could recommend one (my current accountant just seems to want me to sell the IP and invest in his Bonds.)
