Just after a bit of advice on buying a second ip. At the moment we have our first ip as a principal plus interest loan, should both of our ip's be interest only?
We owe about 100k on our primary residence, should we borrow a bit extra for the 2nd ip, say the deposit, and then put it back on our primary residence?
Look forward to your thoughts.
Scott.
You are throwing away good money by having a PI loan on your first investment loan – I would immediately change this one to IO and get IO for the next one too.
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
Cheers terry. I am starting to see the light.
I am starting to get a short to mid term plan happening, and am trying to learn how to structure things. Better late than never I guess.
Don't worry too much, at least you have begun to invest – and most people get it very wrong.
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
Definitely investigate taking some equity out of your PPOR for your next IP as the funds to complete (deposit and costs) as this has tax deductibility. Ensure that you take it out as a separate loan/split, not an increase against your existing loan.
As Terry has mentioned, all investment loans are best suited to I/O, whereas you might prefer to have P&I plus an offset (or I/O plus offset) against your primary residence (both for future deductibility and as a buffer for future events).
You must be logged in to reply to this topic. If you don't have an account, you can register here.
