Dear smart minds on SS,
Background information:
We own totally our house which valued at 300k.
Our 1st investment property valued at 400k. The loan of this IP is 130k with an offset account attached. There is 90k in the offset account at the moment. Now we want to go for another investment property but still want to have some cash for other things in the near future.
Our question:
Can we borrow 100k against our principle property to buy 2sd IP or do we have to use the money in the offset account to do it? Will tax office question if we do not use money in the offset account to purchase but borrow against our house to buy the 2sd IP.
Thanks heaps.
NPK
Background information:
We own totally our house which valued at 300k.
Our 1st investment property valued at 400k. The loan of this IP is 130k with an offset account attached. There is 90k in the offset account at the moment. Now we want to go for another investment property but still want to have some cash for other things in the near future.
Our question:
Can we borrow 100k against our principle property to buy 2sd IP or do we have to use the money in the offset account to do it? Will tax office question if we do not use money in the offset account to purchase but borrow against our house to buy the 2sd IP.
Thanks heaps.
NPK