Hey all, i am back for some more wisdom.
Heres the deal, we have revalued our PPOR, its gone from $370K to $410k, freeing up approximately $36k (90% 0f 40k). These funds are to be used to help fund the purchase of another property which will be our new PPOR.Our original property will be kept for IP.Question..If we increase our mortgage on our existing PPOR (by $36K) BEFORE it becomes an IP, is the interest paid on this also tax deuctale along with the rest of our already exhisting mortgage????
Heres the deal, we have revalued our PPOR, its gone from $370K to $410k, freeing up approximately $36k (90% 0f 40k). These funds are to be used to help fund the purchase of another property which will be our new PPOR.Our original property will be kept for IP.Question..If we increase our mortgage on our existing PPOR (by $36K) BEFORE it becomes an IP, is the interest paid on this also tax deuctale along with the rest of our already exhisting mortgage????