Hi guys
I've been reading this
http://www.somersoft.com/forums/showthread.php?t=54387
and this
http://www.somersoft.com/forums/showthread.php?t=54502
but it's giving me a headache.
My situation:
Current PPOR - townhouse
Purchase price: 260k
Loan: 100k variable + 100k fixed with 100% offset account
Current Residex value: 320k
(yes newbie mistakes there)
I am looking to buy a home and land package costing 445k. So what I can get from my townhouse is 330k x 80% = 264k. 264k - 200k existing loan = 64k for house deposit. Once the house is built, I intend to move in and make the townhouse an IP.
Questions:
1. Would the interest on the 64k be tax deductible after the townhouse becomes an IP?
2. My calculation (264k - 200k existing loan). Is this correct with one loan being a fixed loan or this wouldn't matter?
3. With an estimated weekly rent of $320 for the townhouse, would this be a good return?
4. If no to question 1, what would you do if you were in my situation?
Thanks
I've been reading this
http://www.somersoft.com/forums/showthread.php?t=54387
and this
http://www.somersoft.com/forums/showthread.php?t=54502
but it's giving me a headache.
My situation:
Current PPOR - townhouse
Purchase price: 260k
Loan: 100k variable + 100k fixed with 100% offset account
Current Residex value: 320k
(yes newbie mistakes there)
I am looking to buy a home and land package costing 445k. So what I can get from my townhouse is 330k x 80% = 264k. 264k - 200k existing loan = 64k for house deposit. Once the house is built, I intend to move in and make the townhouse an IP.
Questions:
1. Would the interest on the 64k be tax deductible after the townhouse becomes an IP?
2. My calculation (264k - 200k existing loan). Is this correct with one loan being a fixed loan or this wouldn't matter?
3. With an estimated weekly rent of $320 for the townhouse, would this be a good return?
4. If no to question 1, what would you do if you were in my situation?
Thanks