Can someone offer a bit of advice. I am refinancing to complete some renovations on my own property I live in. I own this property plus 3 IP's. I am also attempting to change lenders during my refinance. Total Loan package required is $579000 against valuations of about $1090000. My own house is ina trust, 2 x IPs are in my LAQC and 1 IP is in my own name.
Question 1 - I was going to borrow up to maximum on my IP's therefore reducing my personal home loan (217) however my accountant said this will be seen as tax avoidance as you can't keep borrowing against your IP to do this and claim interest deductions. Is this right. Would it be better just to keep the same amounts I owe now despite of their valuations and have the IO and use the additional money towards my own mortgage?
Question 2 - My new lender,when they have sent me the new loan docs has cross listed all my securities on the docs e.g.Even under my LAQC which should be a seperate entity they have listed my family trust as a guaranter. I do not think this is warranted given the fact I have more than enough equity in my IPs and my own house and the fact of having a LAQC and FT is that you want to keep everything seperate.
If someone can offer advice to me for the above, I have yet to sign the loan docs but need to do so this week.
The new structure would be with the same lender and all my income (personal and IP) going into one account with Loan deductions per month coming out to their seperate accounts.
Appreciate all help in advance - this is my 1st posting. After renovations on my house is complete I will re kick start my IP portfolio thanks to Chris and others excellent postings.
Question 1 - I was going to borrow up to maximum on my IP's therefore reducing my personal home loan (217) however my accountant said this will be seen as tax avoidance as you can't keep borrowing against your IP to do this and claim interest deductions. Is this right. Would it be better just to keep the same amounts I owe now despite of their valuations and have the IO and use the additional money towards my own mortgage?
Question 2 - My new lender,when they have sent me the new loan docs has cross listed all my securities on the docs e.g.Even under my LAQC which should be a seperate entity they have listed my family trust as a guaranter. I do not think this is warranted given the fact I have more than enough equity in my IPs and my own house and the fact of having a LAQC and FT is that you want to keep everything seperate.
If someone can offer advice to me for the above, I have yet to sign the loan docs but need to do so this week.
The new structure would be with the same lender and all my income (personal and IP) going into one account with Loan deductions per month coming out to their seperate accounts.
Appreciate all help in advance - this is my 1st posting. After renovations on my house is complete I will re kick start my IP portfolio thanks to Chris and others excellent postings.
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