Love the advice on these forums Looking for the most tax-effective way of buying new PPOR and turning current PPOR into IP2.
IP1: value 210K, loan 219K, rent 270/wk; (just settled)
PPOR: value 365K+, loan 155K, will rent for 350+/wk;
New PPOR: 410K max. (incl costs).
Will need to refinance both loans in Jan, likely with diff lender. IP1 is IO var, PPOR is P&I var. No exit fees.
When I buy new PPOR, existing PPOR loan of 155K will go IO & become tax-deductible, though I’ll want to draw about 200K equity (via LOC?) for deposit on new PPOR (to keep total LVR just <80%).
Is there any way around being stuck with 155K deductible debt and a 200K non-deductible debt on IP2? Want to keep PPOR for CG. Selling to family member & buying back would cost about 30K. Doubt it’s worth it. Would rather not sell and re-purchase elsewhere. Also have shares worth 29K, margin loan of 8K. Any suggestions gratefully received.
IP1: value 210K, loan 219K, rent 270/wk; (just settled)
PPOR: value 365K+, loan 155K, will rent for 350+/wk;
New PPOR: 410K max. (incl costs).
Will need to refinance both loans in Jan, likely with diff lender. IP1 is IO var, PPOR is P&I var. No exit fees.
When I buy new PPOR, existing PPOR loan of 155K will go IO & become tax-deductible, though I’ll want to draw about 200K equity (via LOC?) for deposit on new PPOR (to keep total LVR just <80%).
Is there any way around being stuck with 155K deductible debt and a 200K non-deductible debt on IP2? Want to keep PPOR for CG. Selling to family member & buying back would cost about 30K. Doubt it’s worth it. Would rather not sell and re-purchase elsewhere. Also have shares worth 29K, margin loan of 8K. Any suggestions gratefully received.