I'm getting a loan for an investment property which I intend to pay back quickly, can I redraw against that to buy a car in a few years?

Hi Jessica
You can use equity in your property, whether it be the home you live in or investment, for any personal purpose. As I am not able to give tax or financial advice I would speak to your accountant about the tax implications if you redraw the additional payments you have made from the investment loan for personal use . Alternatively you could take out a new home loan for the car with the security being the investment property to keep it 'clean' (I am sure your accountant would love you!)

Great question Jessica,
As Debra points out it is very important not to mix your personal and investment debt.
I would probably suggest putting your dpare cash into a high intrest savings acoount or even an offset account.
in this way you can use the cash to purchase the depreciating asset while maintaining the maximum deductible debt against the investment propety for asset protection.
Hope this helps
Awesome Lending Solutions

We can redraw against the security. However I prefer to keep loans that are tax deductible (investment loans) and loans that aren't (loans for personal purchases) separate. Makes it clearer for an accountant to distinguish between the 2 easily during tax time.

Sure can ! Just make sure that you have a seperate redraw facility in order not to confuse tax eligible debt. You should have your needs assessed each time you borrow money by your broker as loans are changing all the times and what facility you have today might not be the best fit for you in a few tears time there might be something new on the market that suits you better 😄

Hello Jessica,
Provided your investment loan has a redraw facility, and the loan is not in a fixed rate period, the short literal answer is yes.
HOWEVER, this could have tax implications - unless the vehicle you buy will be used for business etc., you are unlikely to be able to claim deductions on that part of the loan redrawn. Please talk to your accountant on this before doing the redraw.