hi All,
Is it considered true that the new LVR rules reduces negative gearing? For example, say
I have family home worth 500k (no mortgage)
I plan to borrow 700k to buy a new family home that cost $1million.
After buying my new $1 million family home, my 500k family home now used as a investment property (rental).
For new LVR (40% deposit), this means my 700k loan is split. 420k (60%) will be on the 500k home
and remaining (40%) 280k will be on the 1 million home. This is not so great as the interest on the 280k loan cannot be tax deductible. Under older rules, a larger amount of the loan can be on the investment property resulting in a greater portion of the loan being tax deductible.
Would be great if someone could advice if there is a way to achieve better tax deductible from the loan interest.
Is it considered true that the new LVR rules reduces negative gearing? For example, say
I have family home worth 500k (no mortgage)
I plan to borrow 700k to buy a new family home that cost $1million.
After buying my new $1 million family home, my 500k family home now used as a investment property (rental).
For new LVR (40% deposit), this means my 700k loan is split. 420k (60%) will be on the 500k home
and remaining (40%) 280k will be on the 1 million home. This is not so great as the interest on the 280k loan cannot be tax deductible. Under older rules, a larger amount of the loan can be on the investment property resulting in a greater portion of the loan being tax deductible.
Would be great if someone could advice if there is a way to achieve better tax deductible from the loan interest.
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