All Topics / Finance / Loan Structures and Refinancing to Purchase PPR

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  • Profile photo of sbrodysbrody
    Member
    @sbrody
    Join Date: 2005
    Post Count: 8
    January 6, 2009 - 10:01 am

    I am considering purchasing a PPR this coming year and was interested to learn of your opinions about how I should structure my loan.
     
    Currently, I have two investment properties which are secured against each other and I am able to redraw $25k.
     
    What I was hoping is that I could somehow restructure my loans so that the PPR loan could be part of my investment loan so I could minimise my tax and keep on claiming on interest.
     
    Looking forward to your ideas.

    Regards and happy investing
    sbrody

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    January 6, 2009 - 11:13 am

    You cannot structure the loan in a way to claim the interest of the new PPOR. Whatever is borrowed for this won't be deductible whether you take it from the old loan or have a larger new loan.

    If you had equity, what you could do is set up a LOC and use that to fund all IP expenses freeing up your money to place into the new home loan saving you interest.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of sbrodysbrody
    Member
    @sbrody
    Join Date: 2005
    Post Count: 8
    January 7, 2009 - 8:09 am

    Hi Terryw

    Thanks for your response, thats a great idea.

    Regards
    sbrody

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