Hi there. we are renting at the moment and are in the process of selling shares. this will buy our first home outright. we are wondering should we keep back some money and buy an investment home. we are both in our 40s and dont have a great deal in super between us. can anymone advise. cheers marie
Probably not. Mainly for taxation reasons.
See you accountant about this. But basically you should buy you house, and then use this as security to borrow more money to buy the investment.
If you do it the other way, you will be paying interest on your home loan which you can’t deduct.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi,
Yeah, buy a house to live in then look at property. On the plus side you will be saving rent (which comes from post tax money) and you wont be paying interest also from post tax money.You could then for example buy an investment and know you’ve got the money you normally would have been spending on rent to cover any costs it generates and you’ll pay those costs with pre-tax dollars. Much better.
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