I have a question for the finance wizards out there I’m not the best when it comes to the technical side.
I have a few extra dollars available each week and a 30-40k bonus comming at the end of the year I’d like to know which option would be best.
I have 3 IP’s
1) cp+ slightly[biggrin]
2)neutral[exhappy]
3) -ve geared not counting depreciation[blush2]
Which one would be best to put the extra cash into given that I pay 47% tax on some of my earnings. [angry2]
Would it be better to pay some off the cp+ property and put the extra earnings into the others or is it better to pay some off the -ve property as I would instantly save 6.72% interest on that money.
Or
Would it be better to put it in shares and even consider a margin loan although I would like to start reducing the loans on the propertys.
Or
Is there a better option again (apart from giving it to all you other property gurus)
The first two propertys have increased in value over the last few years the third I have only recently purchased.
Any help is appreciated.Thanks Dave
Dave,
I would use it to reduce any non deductible debt or home loan debt.
Or I would use it to buy another investment. Perhaps some shares or managed funds or as a deposit on another IP.
Paying off deductible debt is my least favoured option.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I am with Simon on this one.
In saying that it doesnt appear that you have any non deductible debt so maybe a combination of paying down some of the debt for neg geared IP (prefer to see the funds invested in an offset A/c in case you need them again) or maybe even a Tax effective forestry Investment which will reduce your Tax in the current year and may assist in defering it in a year when you income is not so high.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Overall, it wouldn’t matter which property’s loan you put the money into. Your net tax position would be the same. Maybe putting it into a 100% offset account?
Terryw
Discover Home Loans
Parramatta
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If you have a low income spouse then a high yield account in their name would be effective also.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks Simon, Richard, Terry
We do have a block of land we wish to build another IP on at some stage so putting it towards that could be a good option. Might put the extra savings into an offset account and then with the bonus it should be a good deposit on the building costs.
Thanks again
Dave
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