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  • Profile photo of Tommy15Tommy15
    Participant
    @tommy15
    Join Date: 2013
    Post Count: 0

    Hey guys.

    I recently sold 1 of my 2 properties, i live in 2nd one. Looking at buying another place and renting out the one im living in. My question is if i pay out my loan for the house im in, in the mean time, then i cannot re loan that and get tax benefits later on when i re buy can i ?

    I got a offset account and put full amount of loan into it but still pay principle….. basically i dont want to pay any $$ to bank in the time between buying next place…….. is there a way to do it ?

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416

    Hi Tommy,

    Some of our Mortgage Brokers onboard could likely come up with a more complete scenario for you.  I would think you will be able to find a way that works best for you.  Meantime, do have a look at this post :-

    https://www.propertyinvesting.com/topic/5037642-investment-property-finance-tax/#post-5037653

    It was written for those who are contemplating moving out of their PPOR and making it into a rental.   Terryw mentions 11 separate strategies that may (or may not) apply to you.   Check out some of his later ideas (in particular, Strategies 7 thru 11) as there are some VERY useful thoughts right there.

    Benny

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    then i cannot re loan that and get tax benefits later on when i re buy can i ?

    No because there will be no interest.

     

    I got a offset account and put full amount of loan into it but still pay principle….. basically i dont want to pay any $$ to bank in the time between buying next place…….. is there a way to do it ?

     

    If a loan is fully offset there will be no interest to pay, but if you remove the offset the interest will start again and this interest could be deductible if the loan related to the purchase of that property and that property then becomes available for rent.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

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

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