Change own home to investment

Discussion in 'Legal Issues' started by darrelj, 29th Feb, 2020.

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  1. darrelj

    darrelj Well-Known Member

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    8th Mar, 2016
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    Tasmania
    my only home is currently on a mortgage. I there been living there for almost 5 years. now i intend to move out to a rented home and rent my home .
    will it then turn into an investment property. have i got to inform the bank or is nit a requirement?
    can i claim the interest portion that i pay in the mortgage at tax return time?
     
    Last edited: 29th Feb, 2020
  2. Trainee

    Trainee Well-Known Member

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    Not enough information about deducting interest.

    Have you refinanced or redrawn from the loan in the past? If yes, what did you use the proceeds for?
     
  3. darrelj

    darrelj Well-Known Member

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    Tasmania
    i have not done any changes to the loan . just been paying capital and interest since day 1. Another 25 years to go out if a 30 year period. i don’t have any other properties or assets thanks
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    You will have to read your contract with the bank. Some newer contracts have a requirement to inform the bank if you move out. They will put the rate up as a result.

    Once available for rent or rented you could claim the interest on the loan if it was used to purchase or improve the property
     
  5. darrelj

    darrelj Well-Known Member

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    8th Mar, 2016
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    Location:
    Tasmania
    Thank you. Let me check on this