VIC Looking for PPRO in school zones

Discussion in 'Where to Buy' started by woofwoofpawpaw, 3rd May, 2019.

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  1. woofwoofpawpaw

    woofwoofpawpaw Active Member

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    14th May, 2017
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    Location:
    vic
    If I have already paid off a large chunk of my current home loan, how to I assess the money when I am turning it into an IP?
    (Newie here in property investment)
     
    woofwoofpawpaw, 6th May, 2019
    #21
  2. Jim G

    Jim G Well-Known Member

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    15th Mar, 2020
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    Location:
    Melbourne
    Have you looked into Oakleigh South? Matches all of your criteria.
     
    Jim G, 11th Jul, 2020
    #22
  3. geoffw

    geoffw Moderator Staff Member

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    Newcastle
    Accessing the money isn't a problem. Providing you have serviceability, you should be able to take out a new loan.

    The bigger problem is tax deductability. If you stayed in your original home, and borrowed against it to buy an investment property, you would be able to claim interest paid (though not capital reduction) as a tax deduction against your earnings. But if you're borrowing to buy a new home to live in, you can't claim the interest.

    I'm not sure what the solution is, you'd have to get specialist advice. Perhaps you're better to sell the original home to finance your new home, then borrow to buy a new investment property.
     
    geoffw, 12th Jul, 2020
    #23
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