澳洲Australia property advise on converting PPOR into investment
在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m
I have just recently purchased investment property in Kings Langley for $382,500. I had some questions in relation to converting investment property into residential within next 3 years or so.
I am currently own place in Toongabbie (appartment) and have paid substaintial loan on that property.
Current PPOR Loan: $238k
Balance remaining: $173k
I drew a seperate equity loan based on current property to finance property at
Kings Langley ($54k loan).
So now i have three loans: $173k(P*I) and $54k(interest only) for PPOR and $350k(investment property)
I plan to convert my investment property into residential in next 3 years time and would rent out my current PPOR.
In that three years time, i plan to reduce $173k to $100k(getting some financial assistance from my parents)
My question is;
1. My plan is to redraw that extra payments ($73k) and repay into $350k property. Are there any tax consequences in doing so?
Eventually my loans would be : $173+$54 (investment property) and $277(residential property)
2. Anyone having outlook on Western Sydney suburbs (Toongabbie, Kings Langley) over longer term (7 years +)?
Can someone please advise?
Thanks very much in advance.
Deductibility depends, generally, on what the funds borrowed are used for. Taking $73,000 from redraw means you are creating a new loan. So if this is used for the payment of investment expenses then the interest on it would generally be deductible.
I think you mean you will convert your rental into a main residence (they could all be residential properties if not commercial).
I would suggest you stop paying PI on any loan as you would want to have any cash available for the new main residence. By paying down rental property loans you will end up paying more tax.