Using savings advice

sounds like you could use some tax advice/

 

Thanks Niche. I have been looking into this more and I think I understand how to do it. You also mentioned split loans would make it easier

Any chance you could explain this further? Which loan would you split and
We have our main residence loan and other investment property loans.
The one loan which is an investment property with the highest interest rate of 4.55% is fixed untill 6th of July. So we will be getting a better rate as soon as it expires

 

You should split loans so that they only have 1 use - generally

 

See
Tax Tip 3: Mixing Loans - Don’t do it https://propertychat.com.au/community/threads/tax-tip-3-mixing-loans-dont-do-it.1517/

 

These are my loans they are individual for each property :

PPR loan (current residence) - 2.73% P&I variable - Repayment per month is $2,954.57 -

investment property 1 - 3.10% P&I variable - Repayment per month is $1,037.48 -

investment property 2 - 3.70% I/O 3 yr fixed - Repayment per month is $1,101.33 -
Investment property 3 - ( is split into 2 loans ) -
sub loan - 3.99% P&I ($218,049,59)
sub loan - 4.55% P&I ($76,368.40)


I would be borrowing an extra 50k give or take on the current residence loan (2.73%)
paying that loan portal of 50k from my own savings
redrawing that and putting that into one of the higher interest investment loans ( investment property 3)

Mind you, investment loan 3 is fixed untill the end of the month so I will be looking for a lower rate and getting rid of the split portion if its possible and not expensive to do

From this info. Would it be wise to split anything? I I do not need to?

 

it depends what you are plannign to do
If you borrowing more against hte main residence then a new split rather than an increase.
If you are paying the main residnce loan down best to split

Consider whether to break the fixed loans too - you could claim a deduction this year if break before 30June

 

I have 2 fixed loans but one is expiring 6th of July. Ill find out if it costs much to split main residence loan and to break the fixed term for the other loan I got