I'm about to rent a single dwelling. I'm going to take out a home equity loan to use for debt consolidation and for personal use. Is it better to do it before or after I rent (for tax reasons)? Will it affect my capital gains tax when I'm ready to sell?
To borrow for a home equity loan, you must be the owner and not a renter. Can it be assumed that you own one property and will rent another?
A home equity loan will probably have a lower rate than the existing personal loans you now have, so borrowing at that lower rate can save you interest. A key is to not re-charge on any of those personal accounts.
Interest on a home equity loan can be tax deductible. You should consult a financial planning professional to determine if this is the best action for you, what the tax advantage may be, allowing for your residency, and what effect it will have on capital gains you may owe now or in the future.
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To borrow for a home equity loan, you must be the owner and not a renter. Can it be assumed that you own one property and will rent another?