Hi all,
Given it's EOFY, I'm currently mulling over my loan structure and looking to clean it up in order to increase deductible costs on the IP.
I think I'm clear on most of what I want to achieve, but I have a couple of questions for the brains trust.
Scenario:
I am now looking at restructuring the loans in order to maximize the deductible interest payments on the IP by transferring the title of the IP into my name only (in Vic, so no stamp duty due to "love and affection") and then refinancing with our lender to shift as much of the debt onto the IP loan as possible.
Questions:
Many thanks!
Given it's EOFY, I'm currently mulling over my loan structure and looking to clean it up in order to increase deductible costs on the IP.
I think I'm clear on most of what I want to achieve, but I have a couple of questions for the brains trust.
Scenario:
- The wife and I have a PPOR and an IP
- The IP was originally our PPOR, converted to IP in Jan 2013 when we purchased the new PPOR in Nov 2012
- Both titles are in both our names
- IP: value ~$600k, owe $250k
- PPOR: value $850k, owe $780k
- I am the main breadwinner
I am now looking at restructuring the loans in order to maximize the deductible interest payments on the IP by transferring the title of the IP into my name only (in Vic, so no stamp duty due to "love and affection") and then refinancing with our lender to shift as much of the debt onto the IP loan as possible.
Questions:
- Am I on the right track with the above?
- Will we need to pay CGT on the IP (due to it being transferred from both names to mine)? If so, can I do anything to minimize the impact of CGT owing?
- Is there anything else I need to consider?
Many thanks!