Release Equity

[cha]

I have rentals that are in a partnership with my partner. The mortgage on these properties are fairly low compared to the market value. We recently moved into our own home which has a big mortgage. Is there a way to release some funds say 150- 200k from the rental properties account and pay some of our home mortgage?. I don't want to sell the rental property to an outside party. How about
1) Getting a loan(interest-free) from the partnership to ourselves and paying our mortgage -- can we deduct the interest cost of that part of the loan from the partnership?
2) Sell the rental property to another entity for market price (say trust or a company) - Will this trigger the bright-line test? Now that it has come back to 2 years it should be ok. There is no intention of selling this soon.
3) Any other ideas?
Thanks,

[chook]

I have rentals that are in a partnership with my partner. The mortgage on these properties are fairly low compared to the market value. We recently moved into our own home which has a big mortgage. Is there a way to release some funds say 150- 200k from the rental properties account and pay some of our home mortgage?. I don't want to sell the rental property to an outside party. How about
1) Getting a loan(interest-free) from the partnership to ourselves and paying our mortgage -- can we deduct the interest cost of that part of the loan from the partnership?
2) Sell the rental property to another entity for market price (say trust or a company) - Will this trigger the bright-line test? Now that it has come back to 2 years it should be ok. There is no intention of selling this soon.
3) Any other ideas?
Thanks,

Talk to your bank

[Albert]

Nup last thing you want to do is start there, they wouldnt even know what the question was.

Talk to your Accountant or more specifically a "Property Accountant" - or pay GRA $650 an hour to tell you how to do it correctly, which could save you 10's of thousands.

[donna]

Get a good mortgage broker. With interest deductibility back, the aim can be to load up debt against the rentals, leaving much lower debt on your PPOR.

regards,

Donna

[Albert]

Get a good mortgage broker. With interest deductibility back, the aim can be to load up debt against the rentals, leaving much lower debt on your PPOR.

regards,

Donna

Nope, wrong professional again, bad move.

Not what they do.

Property Acountant is the only professional who can answer the question the poster has asked.