Almost every home in Abbotsbury is a separate house, and close to half are owned outright, so many owners here can move on without selling.
Set the loans up by purpose. Whether interest is tax deductible depends on what the borrowed money is used for, not on which property secures it, so borrowing against your Abbotsbury house to buy the next home is generally not deductible.
Settle the structure, and whether to keep or sell, before you buy.
Abbotsbury is mostly detached homes, 98.1% of everything built here. With little strata to assess, the lending questions tend to be about the buyer and the block, not the building. Abbotsbury is an owner-occupier suburb: just 10.4% of homes are rented.
Fewer rentals also means less investor competition at auction than in apartment suburbs nearby. Four in ten homes are owned with a mortgage, above the 32.5% across NSW. Plenty of those owners are now upgrading, refinancing or helping the next generation in.
Separate housesTownhouses and semisApartments
apartments NSW 21.7%
separate houses NSW 65.6%
terraces and semis NSW 11.7%
rented NSW 32.6%
with a mortgage NSW 32.5%
private dwellings
Source: ABS Census 2021, Suburbs and Localities (SAL10002).
Home equity calculator
For upgraders and investors, how much of your home could work as a deposit.
That usable equity could work as a deposit on an investment property or renovation, structured so your properties aren’t tied together unnecessarily.
Usable equity assumes lending to 80% of your home’s value against your current loan. Lender policy and serviceability decide the real figure.
Confirm your numbers.
Charles and the team recently assisted me with the refinance of my investment property.
As a first home buyer, I was pretty overwhelmed at the start, but Charles made everything much easier. He explained the process step by step and helped me understand my borrowing options. His professionalism and responsiveness were excellent.
I found Charles and Links Property Finance very prompt and professional to deal with. Made it all so easy.
Whether interest is tax deductible depends on what the borrowed money is used for, not on which property secures the loan. If you borrow against the Abbotsbury house to buy your new home, that interest is generally not deductible, even though the house is now rented out.
If the house still carries the loan you took out to buy it, that loan generally becomes deductible once the house is earning rent.
That is why the order of moves matters. Holding spare cash in an offset account rather than paying the loan down, keeping the borrowing for each property separate, and securing the new home loan against the new home can keep the structure clean. Your accountant should confirm the tax position before you act. Investment loans in detail
Charles Touma, Mortgage Broker.
Abbotsbury lies about thirty-nine kilometres west of the city by its official measure, in the City of Fairfield. Its western edge borders farmland and Western Sydney Parklands, and it is best known for Calmsley Hill City Farm, previously Fairfield City Farm.
Lookouts on the parklands ridge, such as Moonrise Lookout and Sugarloaf Ridge, look back across Sydney to the city skyline. There is no railway station, and buses and cars carry most residents.
The suburb is named after Major Edward Abbott, who was granted land here in 1806 and sold it in 1810 to William Browne, who bred sheep and horses on it.
The estate stayed largely intact until the late nineteenth century, was then farmed in smaller lots, and residential subdivision began in the 1980s. The name was approved in 1984. Most estates date from the late 1980s and early 1990s, with a small area in the north-west developed in the early 2010s.
When an Abbotsbury owner is buying their next home and keeping this one, Links compares a panel that includes Westpac, ANZ, Macquarie, ING and Resimac.
Example scenario (illustrative, not a real client): a couple who bought their Abbotsbury house in the early 1990s have paid off the loan and want a single-level home closer to their children. They plan to keep the house and rent it out.
Before buying, they ask their accountant about the tax position, get a written rental appraisal, and borrow for the new home against the new home, offering the Abbotsbury house as extra security only because the deposit falls short.
Keeping the house gives you rental income and a second property, but it also means two sets of costs, a tenant to manage and capital gains tax when you eventually sell. Selling frees the equity for the next home and keeps your borrowing lower.
A rental appraisal and a conversation with your accountant answer most of the question. Rental yield calculator.
Not always. A home you move out of can keep its main residence exemption for a period while it is rented out, under what is often called the six-year rule.
The rule has conditions, and using it affects how your new home is treated, so it is one for your accountant.
Knowing the position before you move helps you decide how long to hold the house. Negative gearing explained.
Many Abbotsbury houses are now more than thirty years old. Some owners rebuild on the same block instead of moving, funded by a construction loan that pays the builder in stages.
The lender values the finished home before work starts, so the plans and the builder’s contract come first. Knock down rebuild loans.
Three paths owners here take, and what each means for the loan.
The groundwork that keeps the next loan simple.
Yes, if your income supports the borrowing for the new home and any loan left on the house. Lenders count part of the expected rent, usually from an agent’s appraisal, towards your income.
Generally not. Deductibility depends on what the money is used for, so borrowing to buy a home you live in is not deductible even if a rental property secures it. Your accountant can confirm the position for you.
Not necessarily. If you might rent the house out later, keeping spare money in an offset account rather than paying the loan down keeps the original loan intact, which can matter for tax. Ask your accountant before making large repayments.
Yes. Many lenders accept it as extra security when the deposit for the new home falls short. Keeping each loan clearly tied to its purpose still matters for tax.
You may be able to treat it as your main residence for a period while it is rented, under rules often called the six-year rule. Conditions apply and the choice affects your new home, so get your accountant’s advice.
Usually not. Most lenders count part of the expected rent to allow for vacancies and costs, and use an agent’s appraisal for a house not yet leased.
One free call covers what you could borrow in Abbotsbury, the lenders that suit the property you want and the order to do things in.
Prefer a callback?Charles calls back within one business day. No documents needed yet.
General information only, not credit or financial advice. Lender policies and government scheme criteria differ and change over time. All lending is subject to individual assessment and approval.
