Granny Flat Loan structure

Hi all,

What would be the best loan structure for a granny flat build on a IP?

Details- IP owes 150K, GF will cost 120K.

Should i create a seperate loan for the GF or just increase the IP loan? as both will be used for investment purposes.Thanks

 

The GF will usually be set up as a construction loan - so prob set it up as a second loan split.

Cheers

Jamie

 

Might be no issues in joining, but separating could be good too if there is a chance you might move into the property or the GF. no harm in separating.

 

Thanks for replying Jamie. Makes sense.cheers.

 

Thanks Terry, Always good to leave as many options down the track as possible! Cheers

 

Is there any issue in terms of tax with splitting a Loan into two
i.e.
split 1. PPOR with offset IO
split 2. Granny flat (no offset IO)
Does having money in offset against split 1 PPOR and not on the investment split look like a scheme to minimise tax?

 

I don't think so.

 

Thanks Terry