Hello,
I'm looking at purchasing my second IP in the near future.
I have a loan of 320k for IP1. IP1 currently valued approx 450k.
I was looking at using the equity available as deposit for IP2.
From what I can gather, my available equity will be 40k ?
Am looking at IP2 approx value 280k. The 40k equity available will not be enough to avoid LMI I understand that. I would be looking at including the LMI and stamp duty in the loan (for ease of argument, making it a ~300k loan)
My question re: loan and tax structure is if I were to include the LMI and stamp duty in the investment loan -
1. is the interest on the LMI and stamp duty tax deductible over the life of the loan?
2. should the LMI and stamp duty be a separate loan or all inclusive? (split loan)
I'm pretty sure this makes sense and I'm sorry if it has been covered a million times before - whilst I have one IP I am obviously still learning like everyone else and want to build my knowledge base
I look forward to the help!
Thanks
I'm looking at purchasing my second IP in the near future.
I have a loan of 320k for IP1. IP1 currently valued approx 450k.
I was looking at using the equity available as deposit for IP2.
From what I can gather, my available equity will be 40k ?
Am looking at IP2 approx value 280k. The 40k equity available will not be enough to avoid LMI I understand that. I would be looking at including the LMI and stamp duty in the loan (for ease of argument, making it a ~300k loan)
My question re: loan and tax structure is if I were to include the LMI and stamp duty in the investment loan -
1. is the interest on the LMI and stamp duty tax deductible over the life of the loan?
2. should the LMI and stamp duty be a separate loan or all inclusive? (split loan)
I'm pretty sure this makes sense and I'm sorry if it has been covered a million times before - whilst I have one IP I am obviously still learning like everyone else and want to build my knowledge base
I look forward to the help!
Thanks