Is there any way to reduce our mortgage without selling our
investment house?
Q.
We have an investment property that is positively geared, and a
very big mortgage on the house we live in. Is there any way to
reduce our mortgage without selling our investment house?
A.
You can't claim any of the interest as a tax deduction but you
could deposit all the rents into your home mortgage and, subject to
your accountant's approval, borrow for expenses on the investment
property such as rates and maintenance by taking a line of credit
loan for that purpose. The interest on this new loan would be tax
deductible. I appreciate this won't make a big different, but it is
better than nothing.
Each week financial advisor Noel Whittaker answers your
questions.
