Structuring question

Discussion in 'Loans & Mortgage Brokers' started by Robbo03, 20th Feb, 2017.

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  1. Robbo03

    Robbo03 Well-Known Member

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    22nd Jun, 2015
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    Hobart
    Hi,

    I am sure this would have been covered somewhere so please point me in the direction if it has.

    We are sorting out our finances to buy our next IP and will be using cash in our PPOR offset account for deposit and costs. What is the best was to maximize deductible loans and minimize those that aren't deductible? Obviously if I just pay cash I lose its ability to offset non-deductable debt and being that it was cash there is no clear deductible debt. Does that make sense?

    I have been told that I could pay our savings off our home loan and redraw it to pay for our deposit however this doesn't seem optimal to me as it would create a mixed use loan.

    Any help is much appreciated.

    Robbo
     
    Robbo03, 20th Feb, 2017
    #1
  2. Perthguy

    Perthguy Well-Known Member

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    I am sure @Terry_w has many tax tips on this.
     
    Perthguy, 20th Feb, 2017
    #2
  3. Terry_w

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

    Joined:
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    Australia wide
    Split the loan first
    Pay the smaller portion off
    Reborrow to invest

    Make sure you don't close the loan.
     
    Terry_w, 20th Feb, 2017
    #3
    Robbo03 likes this.
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