Hi,
We're currently looking at upgrading to a bigger home but would like to keep our current one as an IP. The ideal situation would be to have an interest only loan on the IP and then a small P&I on the new home - possibly having the IP slightly positively geared so as to service some of the P&I.
I've heard that this can be done but then I've heard that it can't!! Has anyone done this sort of thing before and if so are there any hints or info you may have? For example our broker (who said it could be done) told us that we need to change the titles. I assume that this is so the majority of the IP would be in my name since I am the main breadwinner and would get the maximum tax benefits.
On the other hand I have heard via an accountant that it can't be done.
Any suggestions??!!
We're currently looking at upgrading to a bigger home but would like to keep our current one as an IP. The ideal situation would be to have an interest only loan on the IP and then a small P&I on the new home - possibly having the IP slightly positively geared so as to service some of the P&I.
I've heard that this can be done but then I've heard that it can't!! Has anyone done this sort of thing before and if so are there any hints or info you may have? For example our broker (who said it could be done) told us that we need to change the titles. I assume that this is so the majority of the IP would be in my name since I am the main breadwinner and would get the maximum tax benefits.
On the other hand I have heard via an accountant that it can't be done.
Any suggestions??!!