Thanks Scott. To make sure, when you said interest, is it the mortgage interest?Example: Loan is $120K repayment $850/ month. Total repayment = $10,200 for the 1st year. That consist of:Interest: $8,800Principal: $1,400council rates, water, etc etc = $5,000rent = $16,200Net = income – interest – costNet = 16200 – 8800 – 5000Net = 2400 (this is…[Read more]

Valkyrie you are correct. I just purchase my 1st property 2 weeks ago so I can say the rule has not changed. You also need to stay there 6 months consecutively claiming that it is your Primary resident, so you cant move here and there on each month. It raises me a question though, do they check?

Woot, thanks for the welcoming and the haste replies. I am enjoying myself here Now that you mention about tax on term deposit; the 100% offset seems to be a very good idea. My initial thought was the account keeping fee of the 100% offset is higher than the loss I made by putting my money onto a term deposit. If I have thought about this earlier…[Read more]

Thank Richard. I really dont want to terminate the contract. I've been looking for this 1st home for quite some times. Thinking to go through the process all over again… oh no.What is the default interest as per contract you mention? And performance remedies? I assume they are on the contract of sale, which I do not have it at the moment. It is…[Read more]