Hi everyone
I need some clarification please.
I have I PPOR and 1 IP. In a couple of years i would like to buy another PPOR for my growing family.
But alot of my equity is in my current PPOR. So what is the best way to transfer it to another PPOR so the new non-deductible debt is not so high.
Should i sell it to a Trust then purchase a new PPOR with the proceeds or should i just leave it and rent it out and then take on a whole new PPOR debt which could be quite high considering that i would like to purchase a median price property in which would be borrowing over $600k plus costs.
What do other investors do can you please advise on some ideas.
Post
There are many factor that would govern your decision here:
1) The actual break up of figures on your PPOR.
2) Your current Marginal Tax rate and income break up.
3) The age of the current property.
4) How long you would stay in the new PPOR.
5) Whether the loans are x collateralised.
6) Which State the property is located.Certainly worth crunching the numbers though.
Richard Taylor | Australia's leading private lender
Best to talk to your accountant
Extra Deductions gained on $X amount (over and above current deductions) LESS
Stamp duty and other associated costs for selling to a trust
Vs
Not sellingIt you structure it correctly, you may be able to borrow to pay interest on your existing investment properties, freeing up cash to place into your new property. It won't instantly help, but it will build up gradually.
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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