To buy or not

[Anonymous]

From: Anonymous




I have made extra repayments on my PPR loan and currently have enough $$ for a deposit on an IP. Do I buy another IP (approx 120K) or leave it to reduce what is not tax deductible?

Was thinking regional for cashflow as a buy and hold.

Opinions only please, no advice

 

[WebBoard]

Reply: 1
From: W W


Dear Annon


A suggestion:

Why don't you withdraw the money form your loan and use it as a depoist for an IP. This way the deposit is borrowed money and the interest on this portion of your PPR loan will be deductable. And you avoid cross collateralisation

Warren