Hi brainstrust :),
I've got myself in a bit of a pickle!
I own and live in a unit, this is where my savings are and offset account. I don't want to touch equity from the place I reside in or use any of the savings I have. My goal is to try offset as much as I can and pay off the principal place of residence.
I also own and rent another investment property 1, owing 600k now. This investment property has grown about 400k in value over last 8 years.
If I was to take equity out of the investment property 1 i.e. 200k (20% deposit and stamp duty) to purchase another investment property (650k/700k); what is the smartest way and how can I claim any future tax deductions?
For example, do I go down the path of taking 200k out of the investment property 1 (top up), so my investment property loan is 800k not 600k or do I split the load i.e. take out a new 200k loan from my investment property 1, so then I can I can pay for 20% deposit and stamp duty to purchase investment property 2?
If so, how do I claim/calculate interest for investment property 2 purchase if I did top up from investment property 1 home loan?
Or is there a better option/plan?
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