Can I remortgage an existing investment property to avail of interest relief

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updadubs

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Are there any situations whihc i can justify remortgaging an existing investment property in order to avail of increaed interet releif on borrowings?
 
Re: Can i remortgage an existing investment property to avail of interest releif

As far as I know you can remortgage and use the interest relief IF the money is being used directly on the investment property (eg - replacing a kitchen or bathroom) . You should check with your accountant to be certain.
 
Re: Can i remortgage an existing investment property to avail of interest releif

or to buy another investment property. but not to buy a car or do up your own house.
 
Yes - it's what the money is used for and not what asset it is secured on that matters here. If you remortgage an investment property to renovate the property or buy another investment property then you can write the interest off against the relevant rental income. But if you use the money for other purposes then you cannot.
 
Thanks everyone for replies.. i was really confused about this from the revenue website.

If i remorgage investment propery A to buy property B

can i write off interest on motgage covering property A & B against rental profit from both A & B?

Basically i have an inv property which turns a good profit, i was tinking of buying a section 23 but would much rather buy a fixer upper instead and was wondering if i remortaged the old one to buy the new one could the interest on the total loan be used against rent fromthe first property as well?
 
Three people have already answered your question. What confusion remains!? :confused:
 
if i remortgage (first property) to buy another investment property (second property), can i write the interest on the additional borrowings off against the rent recieved from the first house as well as rent recieved from the second, or only the second.
 
As far as I know you can only write interest on loans used to purchase/renovate an investment property off against rental income from that property and not any others. I may be wrong so get independent, professional advice if you are still in doubt.
 
Interest from mortgage on property 1 plus interest from mortgage on property 2 plus remortgage interest on property 1 (which consists of the equity release on property 1 to purchase property 2) are all deducted from whatever Irish investment properties you have in arriving at profit.
 
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