Investment Property loan which then becomes PPOR

Discussion in 'Loans & Mortgage Brokers' started by Frank Manno, 7th Jun, 2017.

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  1. Frank Manno

    Frank Manno Well-Known Member

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    Hey everyone..

    What happens if you purchase an investment property and get an investment loan for it.. But then soon after decide to move in and make it your PPOR?

    What happens with the loan? Does it just continue on?

    The bank would have used the rent from the Investment Property to approve a certain amount for the loan. That rent would no longer be there once it becomes a PPOR..

    So long as the bank gets their payments regularly would they even care about it becoming a PPOR?

    Could OSR argue for Capital Gains Tax once sold saying that there was investment loan and therefore its an investment property?



    -Frank
     
    Frank Manno, 7th Jun, 2017
    #1
  2. Terry_w

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

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    It would just continue as per normal.
    OSR don't administer income tax so don't care. ATO do and they would look at the circumstances of when you moved in.
     
    Terry_w, 7th Jun, 2017
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    Ace Ventura and Frank Manno like this.
  3. tobe

    tobe Well-Known Member

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    You could probably get the bank to change the interest rate to OO rates. You might be able to get a stamp duty refund as an ppor.
     
    tobe, 7th Jun, 2017
    #3
    Terry_w likes this.
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