Browse Forums Home Finance Re: Build postponed - moving funds for building to loan acco 5Dec 27, 2022 9:38 pm Accessible Carpentry & Cabinets accessiblecarpentry@gmail.com accessiblecarpentry.com.au https://www.facebook.com/pages/Accessible-Carpentry-Cabinets/583314911709039 Re: Build postponed - moving funds for building to loan acco 6Dec 29, 2022 11:51 am chippy If it's a primary place of residence then there shouldn't be any tax implications either way. until you decide to turn it into IP 10-20 years later, and you find that your loans are all contaminated with personal expenses and it becomes a nightmare to unwind it's best to always keep your loans clean, because most people have no idea what they will be doing with property in 10 years time. Re: Build postponed - moving funds for building to loan acco 7Dec 30, 2022 4:44 pm The OP said it's already IP and has been since inception. And it makes no difference what sort of finance you have. If the property is your primary place of residence there is no tax on it while you live in it. There is nothing to unwind, it's all personal. If you ever decided to rent the property out (then becoming subject to tax rules from that point) it would be more important to keep things seperate but from what the OP has described there is no issue with paying down the loan and then redrawing as it's all personal and untaxed. Accessible Carpentry & Cabinets accessiblecarpentry@gmail.com accessiblecarpentry.com.au https://www.facebook.com/pages/Accessible-Carpentry-Cabinets/583314911709039 Re: Build postponed - moving funds for building to loan acco 8Dec 30, 2022 5:35 pm It doesn't matter what sort of finance you have, it matters what the purpose of borrowing is. If the property is going to become IP again, it will matter then. Plenty of people plan one thing and then everything changes 5-10-15 years down the track. I'm already planning my third 'forever home' for example. Re: Build postponed - moving funds for building to loan acco 9Dec 30, 2022 5:42 pm Sorry, when you say IP what do you mean. I don't understand what you are getting at Accessible Carpentry & Cabinets accessiblecarpentry@gmail.com accessiblecarpentry.com.au https://www.facebook.com/pages/Accessible-Carpentry-Cabinets/583314911709039 Re: Build postponed - moving funds for building to loan acco 10Dec 30, 2022 5:46 pm chippy Sorry, when you say IP what do you mean. I don't understand what you are getting at What i'm getting at is that it's usually best to keep the money separate in offset accounts than put them into loans with the view that a redraw is only a click away anyway. Yes it may be one click away, but that one click can lead to a lot of pain a decade down the track. IP - investment property. Re: Build postponed - moving funds for building to loan acco 11Dec 30, 2022 6:09 pm Yeah got it now, your talking about claiming the interest on an investment property as a tax deduction. For the typical person who has a house and sells it and moves on to the next it really isn't a big deal, but as pointed out if you have access to an offset account it's simpler to use that anyway. Accessible Carpentry & Cabinets accessiblecarpentry@gmail.com accessiblecarpentry.com.au https://www.facebook.com/pages/Accessible-Carpentry-Cabinets/583314911709039 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 20058 Hello everyone, I have a question regarding moving a chandelier after it has been mounted. The chandelier in question is quite large, measuring 4 meters… 0 72687 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 36567 |