Hi All,
I have received $18937 tax refund yesterday. I need advice. What should I do with that money. We still pay mortgage on our PPOR. One of my friends told me that add 5-6 K and buy an investment property (95% loan, property range $250K-$275K). My wife asked me to pay off mortgage ASAP.
We ahve 3 IPs. Please advice.
ThanksI would pay off the mortgage for peace of mind and then borrow against it so you can claim tax. You can’t claim tax off your mortgage.
Put it in an offset account where balance comes of PPOR home loan interest calculation – linked to your PPOR home loan !!
Then later on if you need the $18k for something else like an investment purpose then it is on call to be used .I would do a bit of both.
Stick the funds in a 100% offset linked to your PPOR and then structure the loan in such a manner that you can also buy a further IP.
Richard Taylor | Australia's leading private lender
Thanks a lot.
I need to ask bank whether I have off set account. When I borrowed for my last property, bank asked me to cancel withdrawal facility. It was last year, I have to ask. Thanks for help.vsdabhi wrote:Thanks a lot. I need to ask bank whether I have off set account. When I borrowed for my last property, bank asked me to cancel withdrawal facility. It was last year, I have to ask. Thanks for help.If you have to ask then you probably don't have one – you should know about it.
Always pay off private debt first and then reborrow to invest. You will have the same amount available but more deductions.
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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