I have a split equity loan that has both lines of investment and personal debt. Can anyone tell me if it is possible to unlock equity in investment properties to reduce personal debt without selling or incurring capital gains tax?
Kinda sorta. The normal way to access your equity without selling or incurring CGT is to borrow against the increased equity of an IP.
Two "gotchas" with this strategy.
1) Interest on money borrowed for is not tax deductable. It is the purpose of the funds used that determines it's deducatbility. So talk to your advisors because they should be able to make some of the interest deductable.
2) you still have debt which is technically consumer debt or doodad debt. i.e. it is debt that produces no income.
I have returned to the forum after more than a year and wow how things have changed. Well I've done some homework looking through archives etc. If I followed a description of Steve's system would I be getting close? Are there any other trails I've missed?