Can I buy a new home and keep my old one as an Investment Property
I recently had a client who wanted to buy a new home and keep their current property as an investment. Now generally this is not what I would consider to be a smart move.
There are 2 reasons why I think this:
1. A property you have lived in and something that may have been your first home, has a significant emotional attachment. In my opinion the best investments are made as a business decision. If there are good reasons to negate this emotional attachment and it IS a good investment then DO IT. If not DON’T.
2. Generally, you will have significant equity in your current property. You will then have a new loan for your new property. As this is not for Investment purposes then your tax deductable loan will be smaller than your owner occupied loan. In my opinion you are better having more of your debt for investment purposes.
Part of the benefit in dealing with us is that we have access to a number of accountants and financial planners who can work around this.
When you deal with us as a Finance Broker, you don’t only have access to our finance experience, but you get access to our Real Estate and Property Management Section, our relationship to Accountants, Financial Planners and Conveyancers and Insurance Brokers.
We work together as a team to provide our clients with the best possible advice and service.
This information is general advice. Make sure you speak to our accountant for the full details.
Also too, many thanks for your increased donations too for my upcoming 2016 NSW Police Legacy Kokoda Trek for ANZAC Day. As a Retired Member this is very important to me and I welcome any donations (visit my donation page here).