transferring debt

[Timocracy]

A relative owns two investment property's, I don't know the LVR's but has paid of a substantial amount of them.

They would now like to buy a PPOR.

Is there a legal way to increase the(tax deductible) loan on the investment property and use the money as a deposit for the(non-tax deductible) PPOR?

 

[The Y-man]

Yes - sell the investment property (or -ies), buy the PPOR, and buy back investment property (or -ies). Stamp duty and CGT could be a killer though....

The Y-man

 

[Peter_Tersteeg]

You can put in place a debt recycling strategy, but it'll take 5-10 years to complete.

The properties could be sold to a hybrid trust. You'll pay some capital gains and stamp duty (each end of the transaction). Probably not worth it.

Unfortuantely without proper planning when they bought the IPs, there's not much they can do to help themselves immeidately.

 

[Rolf Latham]

Spousal sale or sale to unit trust may be beneficial

Low core data so cant expect specific answers

ta

rolf