Your Investment Property forum is the place for positive industry interaction and welcomes your professional and informed opinion.

What to do?

Notify me of new replies via email
Clinton | 31 Aug 2013, 08:16 PM Agree 0
I am looking at investing in Property and also building my own home, I have a large cash deposit which im wondering what to do with .Would it be better to use it all on one home loan to reduce the principal and draw down on the equity later for the investment or use the cash for two deposits?
  • Eos Property | 01 Sep 2013, 10:27 AM Agree 0
    While tax shouldn't normally be the sole purpose for making one decision over another in this case, for tax reasons, you are best using the bulk of your savings for your own home & then accessing any equity released as an investment deposit.

    Now that is a rather simplistic response as there are a range of other factors to consider, are you going to stay in your home forever? will your home become an IP at some stage in the future? offset accounts? redraw facilities? and so on.
Post a reply