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From: Toyo Spares
This is possibly a naive question. My apologies if it is, I'm new to all this.
I currently own my own primary residence outright. It is a unit.
I wish to upgrade to a bigger and better primary residence (a house) but also wish to keep the unit as an investment due to its capital gain potential.
With the interest on the new house being non tax deductible (due to it being my primary residence) I wish to transfer the equity from my unit into the new house thereby minimising the loan for it and giving me a tax deduction on the resultant investment loan in the unit.
e.g. it's like selling the unit to myself and buying it with an investment loan at the same time as buying the new house with the proceeds of sale from the unit and an owner-occupier loan.
Is this possible ?
Am I missing something obvious ?
What are the implications ?
Toyo
This is possibly a naive question. My apologies if it is, I'm new to all this.
I currently own my own primary residence outright. It is a unit.
I wish to upgrade to a bigger and better primary residence (a house) but also wish to keep the unit as an investment due to its capital gain potential.
With the interest on the new house being non tax deductible (due to it being my primary residence) I wish to transfer the equity from my unit into the new house thereby minimising the loan for it and giving me a tax deduction on the resultant investment loan in the unit.
e.g. it's like selling the unit to myself and buying it with an investment loan at the same time as buying the new house with the proceeds of sale from the unit and an owner-occupier loan.
Is this possible ?
Am I missing something obvious ?
What are the implications ?
Toyo
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