Turning PPOR into investment in the future

Discussion in 'Loans & Mortgage Brokers' started by Savy mum, 21st Apr, 2017.

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  1. Savy mum

    Savy mum Well-Known Member

    Joined:
    6th Apr, 2017
    Posts:
    76
    Location:
    NSW
    Hi
    My PPOR is worth $550k and loan balance of $220k. Im looking to buy an IP in the next 12 months and thinking of turning PPOR into IP later on.
    My current PPOR loan is P&I with a redraw. Should I change this loan to IO with an offset account asap or is the 'damage' already done
    Thanks
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,571
    Location:
    Gold Coast (Australia Wide)
    Id get specific advice

    certainly, historically an IO with 100 % offset acount was near standard advice ................ not so now with the spread on pricing coming of PI and IO.

    90 % of your damage is done, but may be in part be able to be erased or partiallty reversed

    Again, seek specific advice from a tax adviser, a planner on the debt recycling and a broker on the lending side

    ta

    rolf