Hi Guys and Gals,
Just about to sign on for another IP and wanted to run past my proposed loan/borrowing scheme as haven't done it 100% right in the past for maximising tax/refinance purposes. Its a 3bed house that I want to put a GF out the back of (finally eh Brazen)!
These are the details:
IP purchase - 366k
Renos - 30k
GF max total cost - 100k
Aiming to live in short term whilst reno and build GF, and hopefully revalue in less than the normal 6 month period so can get something else. 5bed/2bath houses in area currently selling for 570k, but think average 6mth sales on these is more like 600k.
Have 70k LOC from refinanced IP's from WPac, 80k cash in bank and was approved for up to 600k through WPac.
Was initally planning to pay 10% deposit for house + 20% deposit for GF + purchase costs + buffer from cash deposit and renos from LOC. But would it be better for tax purposes to use up LOC first if we are not going to live in it for 12 months?
Also how would I get around the <6 month revalue thing? Put up 20% deposit for the house perhaps?
Very grateful for your words of wisdom, as always!
Just about to sign on for another IP and wanted to run past my proposed loan/borrowing scheme as haven't done it 100% right in the past for maximising tax/refinance purposes. Its a 3bed house that I want to put a GF out the back of (finally eh Brazen)!
These are the details:
IP purchase - 366k
Renos - 30k
GF max total cost - 100k
Aiming to live in short term whilst reno and build GF, and hopefully revalue in less than the normal 6 month period so can get something else. 5bed/2bath houses in area currently selling for 570k, but think average 6mth sales on these is more like 600k.
Have 70k LOC from refinanced IP's from WPac, 80k cash in bank and was approved for up to 600k through WPac.
Was initally planning to pay 10% deposit for house + 20% deposit for GF + purchase costs + buffer from cash deposit and renos from LOC. But would it be better for tax purposes to use up LOC first if we are not going to live in it for 12 months?
Also how would I get around the <6 month revalue thing? Put up 20% deposit for the house perhaps?
Very grateful for your words of wisdom, as always!