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Ppor question.

Discussion in 'Property Finance' started by Doors, 28th Oct, 2015.

  1. Doors

    Doors New Member

    Joined:
    28th Oct, 2015
    Posts:
    2
    Location:
    NSW
    Hi all,
    Just after some advice, I have been burnt a couple of times by spruikers in the past and don't want to be done again. Anyway my question is in relation to ppor residence. If for example I owned $250,000 on a $500,000 property and wanted to at some stage turn it into an investment property could I borrow up to say 80% ie $400,000 and park the money in offset and then when it comes time later down the track claim the $400,000 instead of the $250,000 originally and use the offest to purchase a new ppor. I have had some advice and some say I can others say I can't. Don't want to do anything wrong. Ps. New to the site so not 100% sure if this is posted in write forum. Sorry if it isn't.
    Cheers
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,589
    Location:
    Adelaide, SA
    Hiya

    I'd do the other 150k as a seperate split. You can use these for investment purposes and its interest would be deductible regardless whether that place is PPOR or IP.
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,781
    Location:
    Perth WA
    Hey Doors, welcome.

    Definitely can't do what you're proposing, as it's the purpose of the funds that determine deductibility, not the security.

    As DT says, split it off into a separate loan. If you use it for an IP, you can claim it, if a PPOR you can't.