Using IP equity to buy PPOR

[rsoul82]

Hi,

My fiance and I each have an investment property (in our own names).
We are now thinking of using the equity from one of the investment properties to buy another place (in one or both names) as an investment for a year or two and then most likely making it our PPOR in the future.

Are there any advantages/disadvantages of using the IP equity for a future PPOR?
Are there any tax implications or other issues that I need to consider?

 

[Terry_w]

Interest not deductible so don't increase existing loan, but create a new split.

 

[Jamie M]

Hiya

No issue in using equity against an IP to fund a PPOR purchase if done correctly.

Just need to make sure you set up the equity release against the IP as a separate loan so you don't mix deductible/non deductible debt.

Cheers

Jamie