Browse Forums Home Finance 1 Jun 03, 2015 3:55 pm Hi, Currently I have homeloan. I am able to pay off my homeloan from my offset account if I wish. I am able to withdraw this money if I want. Recently I bought land and will be building house in next few months to live in. I am planning to rent out my current home. What will be the best home loan option for me in terms of - tax benefits - investment benefits Thanks in advance Re: Home Loan question 2Jun 03, 2015 5:27 pm Do not pay off the home loan if you are going to rent it out. If you do you will have no deductible debt. Use the money in the offset to buy the land and/or build the new home to live in. By doing it this way all of the loan on the original home (after you take the money out of the offset) will be tax deductible. Get a separate loan if you need more money for the new home. Keep the investment (old home) and new home loans completely separate. Good to hear of someone that knows about offsets. So many people don't use them and lose out of tax deductions. Many people also get offsets and redraws confused. Re: Home Loan question 4Jun 03, 2015 5:47 pm Yep, as travelbug said, don't pay off your current loan. Leave it as is and use your money in the offset for your new owner occupied property. Also worthwhile to change the existing loan to interest only. This will maximise deductions going forward while reducing your non deductible debt. If you are unsure, seek a decent broker who should be able to organise it for you. Cheers Tom Re: Home Loan question 7Jun 16, 2015 10:18 pm NOT giving tax advice, here's a quick blog post I have written which might make sense of the above advice http://homeloancomparison.com.au/offset ... investors/ Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 20085 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 36595 Hi there, I hope someone can give me some insight into a (very lucky) situation I'm dealing with. My Mum was gifted property by my grandfather after he passed. My… 0 737 |