I have a investment property that a rent to my parent . As I have 2 new children time has come to either buy another investment or sell that one. Is buying 2 properties under Interest only loans viable ?
The first house is worth around 450k but I only charge my mum $240 / week to help her out. True rent should be around $350+
I keep it as my Main Resident so CGT should be taken care of
I prefer to buy another house to live in and make that our our PPOR
I am thinking of Changing the loan (100k) to a Interest only loan then redrawing another 100k for deposit on new house (Total 200k)
Buy 2nd house around 430k interest only (360k loan)
Loan repayments should be equivelent to rent I pay now
I wish to build a buffer of around 50k as a redraw to be placed back into loan (emergency buffer)
Bank has given ok if I wantHow is the best way to structure the loans to maximise tax deductions
Is this the smartest way to go I am open to sugestions
Thanks laughingoatAll loans should be interest only. A separate loan should be added on the first one to access any equity. Not so efficient to use redraws. try to borrow the 20% deposit and costs from the 2nd loan an then get a stand alone loan for the remaining 80%.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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