If we sold our existing house and brought an investment property
which would incur stamp duty?
Q.
We have a small loan on our house with about $300,000 equity but
wish to upgrade to a bigger house in the future. We are also
considering using spare income to purchase an investment property.
Could we re-mortgage our current property to buy a bigger house and
rent out our existing house, or for tax implication purposes would
we be better off if we sold our existing house and brought an
investment property which would incur stamp duty?
A.
In order to maximise your deductible debt and miniminse your non
deductible debt, I suggest you sell the existing property and use
the proceeds to buy your new home. When you borrow back for
investment, the interest on the new loan will be tax
deductible.
Each week financial advisor Noel Whittaker answers your
questions.
