We’ve just sold an Auckland property and settlement is in 2 weeks. We will walk away with approx 200k.
We have a rental property (two bedroom unit) in my wife’s name only in Tauranga value circa 400k and loans circa 300k.
We are wanting to buy our own 3 bedroom family home for us and our two daughters in Tauranga in 12-24 months time. My wife is currently on maternity leave.
We are going to put our own home and potentially the rental into a family trust due to the nature of our professions.
We are tossing up whether to pay off 200k into the mortgage of the rental or whether to put it in a term deposit. My father worked for ANZ for 40+ years and has said that if we put it against the rental mortgage there is no guarantee with bank and government policies that we would be able to sell the property into the trust to free it up, make the rental 100% tax deductible borrowing and buy our own home, hence the term deposit option in the interim.
Thoughts?
We have a rental property (two bedroom unit) in my wife’s name only in Tauranga value circa 400k and loans circa 300k.
We are wanting to buy our own 3 bedroom family home for us and our two daughters in Tauranga in 12-24 months time. My wife is currently on maternity leave.
We are going to put our own home and potentially the rental into a family trust due to the nature of our professions.
We are tossing up whether to pay off 200k into the mortgage of the rental or whether to put it in a term deposit. My father worked for ANZ for 40+ years and has said that if we put it against the rental mortgage there is no guarantee with bank and government policies that we would be able to sell the property into the trust to free it up, make the rental 100% tax deductible borrowing and buy our own home, hence the term deposit option in the interim.
Thoughts?
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