Redraw on PPOR to turn into investment.

Discussion in 'Accounting & Tax' started by K8F, 24th Jul, 2021.

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  1. K8F

    K8F Well-Known Member

    Joined:
    16th Jun, 2018
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    Sunshine Coast
    Hi there,
    I’m pretty sure I know the answer to this but just wanted to check.
    I have $224,000 in my redraw in my PPOR, as it is nearly paid off- owing 4K.
    But we want to buy another PPOR and turn this house into an investment.

    If I pulled the 224k out , can I claim the interest on the remaining mortgage once it’s an investment? I’m pretty sure it’s not allowed…
    Thanks
     
    K8F, 24th Jul, 2021
    #1
  2. Terry_w

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

    Joined:
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    You can do it, but you will be borrowing to acquire the new main residence so interest could not be deductible.
     
    Terry_w, 24th Jul, 2021
    #2
    craigc likes this.