Hi I’m in the process of buying my first investment home. It will be negative geared. What is the best way to go with the loan? Should I pay it weekly on monthly? Also I have heard somewhere that it is possible to claim tax deductions off an investment home weekly or monthly (not sure which one) is this true or am I hearing fibs?
If it is true, its a great way to pay the loan off faster.
There are a lot of variables so my advice is general only.
Most people pay a PI loan down weekly. If IO then it makes little difference.
Whether you chose PI or IO will often depend on whether you have a home loan as well.
You can also reduce your PAYG tax as you go each payday. Your accountant or pay staff will help you here.
All the best,
Simon Macks
Interest Free Home Loan Agent
[email protected]
0425 228 985Commercial Refinance to 95% LVR
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Also I have heard somewhere that it is possible to claim tax deductionsThat is correct, it is effectively adjusting the tax you pay as a PAYG tax payer, instead of waiting to the end of the FY to claim the amount owed. It’s called a Section 15 15 (also called tax variation).
What is the best way to go with the loan? Should I pay it weekly on monthly?Do you have a PPOR? If you don’t, then a loan with an offset account maybe a better solution. (If it is an interest only loan, then you pay monthly)
Thanx for the replies
You can also usually claim depreciation. You need to speak to a quantity surveyor about this.
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