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  • Profile photo of pasandbecpasandbec
    Member
    @pasandbec
    Join Date: 2005
    Post Count: 122

    Wise people, lend me your eyes…

    If I want to borrow $40,000 on top of my PPOR loan and then in say 3 months time buy an IP. Can I borrow $40,000 on top of the IP and put that amount straight into my PPOR loan? (basically, transferring the debt from PPOR to IP loan, but being able to access $40,000 NOW – because we can’t find a suitable IP just yet in which to borrow $40,000 on top of)

    Thanks,
    pasandbec

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    Yes, why not. But becareful tax wise. if you try to claim the interest on the $40K it won’t be initially deductible until you use it for the investment.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of PropertyGuruPropertyGuru
    Participant
    @propertyguru
    Join Date: 2003
    Post Count: 1,502

    hi there,
    If you have equity in your PPOR you can borrow 40k depending on your serviceability. But until you don’t have extra equity in your IP you can’t borrow that 40k from there. May be you need to clarify your question.
    Good luck!

    Cheers
    PropertyGuRu [sultan]
    Mortgage Consultant
    [email protected]
    MSN ID: amitash, Yahoo Id: bornguru

    NZ loan pre approval from OZ

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    I would recommend an offset account. Will make tracking the funds easier.

    Cheers,

    Simon Macks
    Finance Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of pasandbecpasandbec
    Member
    @pasandbec
    Join Date: 2005
    Post Count: 122

    to clarify the question….

    we have a house in canberra that we’re putting on the market soon.

    brought for 196,000 will sell for 270-280k ish
    say $70,000 in equity there.

    do you mean a seperate/independant offset account?
    to do that we need to borrow a minmum of $50,000 (already rang the bank)

    thanks.

    Profile photo of Robbie BRobbie B
    Member
    @robbie-b
    Join Date: 2004
    Post Count: 2,493

    Firstly, on those figures, you could only get $20,000 if the house is worth $270,000 unless you feel like throwing a few thousand away for mortgage insurance.

    Secondly, you should use a split if the funds will be for an investment purpose. An offset account is fantastic to have against your family home debt. You can set the loan up and deposit the money straight back into the loan and redraw it when you need it so as not to mix up the non-deductible and deductible debt.

    Thirdly, why organise a new loan if you are selling the place?

    Fourthly, have you considered using bridging finance if you are selling one place to get into another?

    Finally, use a broker or you could make some silly mistakes.

    Robert Bou-Hamdan
    Mortgage Adviser

    http://www.mortgagepackaging.com.au

    Investor Links

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