Purchased cash instead mortgage

Discussion in 'Loans & Mortgage Brokers' started by Indmr, 23rd Nov, 2019.

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  1. Indmr

    Indmr Active Member

    Joined:
    28th Jan, 2019
    Posts:
    43
    Location:
    Australia
    Hello everyone, Need some valuable help.
    I am getting my new house built, in process my initial plan was to refinance my existing home and use the equity for the land purchase for the next one. Unfortunately the loan wasn't ready at the time of settlement. I had savings which I wanted to use for offsetting these loans and deposit for future investment properties. I used that money to purchase the land.
    I am just wondering what are the options I have of still having access to the money I used for purchase land. I believe I can refinance the land and get the money back?

    Initially I was getting my existing Loan refinance (Loan1) and cashing out the equity(Loan 2) to purchase the new land.
    Loan 1 and 2 were Interest only, existing property will become investment property later. Loan 3 was P&I.
    My future plan is to sell existing OO property and reinvest.
    Thanks in advance.
    Screen Shot 2019-11-23 at 10.40.29 am.png
     
  2. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    42,001
    Location:
    Australia wide
    Mortgage the property and borrow against it once complete. You will need to overcome the cash out restrictions.

    Also consider the tax consequences - potentially disasterous if you ever rent the property out
    Tax Tip 62: Paying Cash for a property and then getting a loan Tax Tip 62: Paying Cash for a property and then getting a loan
     
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