I have owned a home (my name) since being constructed new in 2002. It was originally an investment property and then we moved into the home in 2007 and it became our PPR for 2+ years during which time we paid a considerable amount off the the mortgage. We then bought a another PPR and used the equity to assist with that purchase. We are about rent the house out again but I am afraid that any debt on the house is now not tax deductible. Is this true?
Facts:
Pre 2007 mortgage: $290k
End 2009 mortgage: $70k
Mortgage now: $200kAny help would be greatly appreciated.
No the interest will be deductible however only on the $70K amount.
What you should have done was take an interest only loan with 100% offset account and then interest on the full $290K would have been deductible and you would have still had the $220K in a savings account with oncall access.
Richard Taylor | Australia's leading private lender
Thanks Richard. I was afraid someone would say that. I am also in the process of wanting to protect the asset and have considered selling the asset to a new discretionary trust based on an LVR of 75%. This should leave to property slightly short of positively geared. I am on the Sunshine Coast and was wondering if you can recommend a reasonable accountant up that way for property investment activities?
Hi grunter
Cant recommend anyone on the Sunshine Coast but can on the GC.
At the end of the day i guess most business can be done over the phone and email.
Half of my clients are inter or intra state and most loan applications are lodged electronically.
Anyway his details are:
Steve Hodgkinson and he is a partner at the Gold Business Group down at Southport.
http://www.gold-group.com.au/Phone: 07- 5532 2855
Been my Accountant for 15 years and acts for literally dozens of forum members here.
Tell him sent you and I am sure he will look after you.
Richard Taylor | Australia's leading private lender
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