refinance my own home to negative gear

Discussion in 'Investment Strategy' started by warning44, 18th May, 2017.

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  1. warning44

    warning44 Member

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    will be using my own home to rent to holiday rentals and have not fully paid off, less than 100k owing, and want to refinance it to $400K so I can pay off a second home for me to live in and keep loan on my current home and negative gear. Can I do that somehow having already paid off a lot of the capital of the home?
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Nope. You can possibly claim the existing $100k but that's it.
     
  3. Martin73

    Martin73 Well-Known Member

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    No - only the interest on the $100K owing would be deductible.

    You could borrow $300K against your holiday home to invest in shares/property etc however which would make that interest deductible and then use that income stream to pay off your new home loan.
     
  4. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    Three words "purpose of funds" will determine deductability, or not. The security is irrelevant when it comes to tax deductability of interest, its what the funds are used for that determines the outcome.
     
  5. Terry_w

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

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