Residential to Investment

Quick Question - If I purchase a residential house with a full 90% loan (so LMI paid) to live in, and live in it for 12 months (Avoid IP stamp duty), then turn this into an investment house and move onto another property, can I just straight away start claiming the interest expense from the date it was up for rental.

I dont have to change a loan over do I?

Also, the LMI can still be claimed for the remaining 4 years cant it?

Have an investment property we are moving into in 12 months so at a cross roads as to whether to sell our current Residential house (has considerable equity) & buy another house so that we claim a lot more & avoid the investment stamp duty by living in it for just 12 months.

The cost factor to buy/sell is something I have to sum up.

Hope my questions make sense

Cheers
Brett
 
Quick Question - If I purchase a residential house with a full 90% loan (so LMI paid) to live in, and live in it for 12 months (Avoid IP stamp duty), then turn this into an investment house and move onto another property, can I just straight away start claiming the interest expense from the date it was up for rental.

Yes.

I would add that the investment stamp duty compared to the normal stamp duty is not as great as people think it is and you should take that into account if you start messing about with moving around. Today I looked at the figure for a client and the difference was about $5,000.

Also, the LMI can still be claimed for the remaining 4 years cant it?

Yes.
 
Very True, in my case it wouldnt jsut be to save on IP stamp duty, which for me is $7150, it is also to access all the equity to use in our next house.

Its never financially beneficial to have a little loan on an investment house and a complete mortgage (80 or 90%) on a residential house so thats part of the things im summing up.

Thanks for that
 
Its never financially beneficial to have a little loan on an investment house and a complete mortgage (80 or 90%) on a residential house so thats part of the things im summing up.
Welcome to my world. About to have a PPoR which we will be loaning the full amount needed for, two IPs at 20-30% LVR, and not a thing we can do about it.
 
On a side note, you'll also need to get a valuation done on the PPOR when it goes rental. This becomes the new cost base for CG tax if you sell at a later date.

Wokka. amateur only but going through a similar process.
 
True, yeah ive been doing a lot of reading on CGT so thing I have that side of it well and truly down pat. Will try and get the most favourable valuation as its all renovated and schmick now.
 
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