Right loan structure for IPs ?

Hi mortgage experts, my girl friend has a main residence property already, which is worthy about $750k and $600k of equity. we are looking for investment properties and we know that she can use the equity of her main residence property as deposit to purchase investment properties. in addition, we prefer interest only loan and may to use equity portion to purchase more than one lPs in the future.
our question is what loan structure could show ATO clearly that the portion of interest from main residence property used to purchase the IP/IPs.
Any suggestions will be appreciated.
many thanks
 
Hi Joe,

You need to make sure that the portion of the loan used to buy an IP is seperate from the main home loan, by creating a loan split. This gives the new IP split its own account number and statement, making life easy when it comes to tax time.
 
Apply for a new investment loan separate to your current PPOR loan.

It may be worthwhile applying for considerably more than you need and keeping the funds sitting there in the new loan account. When you're ready to purchase an IP, use this loan account for your deposit + closing costs. Apply for a separate investment loan for the remaining 80% of the new investment property.
 
our question is what loan structure could show ATO clearly that the portion of interest from main residence property used to purchase the IP/IPs.

Separate loan secured in the main residence.
Borrow from this to pay stamp duty and costs. Make sure this is paid directly from the loan account with no detours.

And that's it.
 
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