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Thanks. But that’s not what I was asking.
Just want to know if I can negative gear as I might not receive rental income this financial year
$50K included council fees, demo, plans and permits etc.
I have decided against this as finances would be to stretched.
the house is almost a writeoff but can be salvaged with $100K
Hi all. After meeting with a couple of carpenters/builders they were shocked with state of property. Front of house is ok…. Back which includes kitchen, bathroom is pretty much right off and floor joists also need to be replaced.
Looks like will will need min $70k to get somewhat up to scratch and $100k for better result.
question is given location inner west. Land alone would be worth $550k. Is it worth throwing $70-$100k at it ?
Other option is x2 quality town houses @$330-$350k each build cost+approx $50k for plans,
and demo costs. Would be tight given land width approx $12.5 wide however >40 meter depth. Have been told by some designers two side by side with street frontage and front garage is possible. Not sure end result $equity would be worth it compared with $ Reno and end value.
Does this answer my question. Taken from ATO website.
Expenses prior to property being available
for rent.
You can claim expenditure such as interest on loans,
local council, water and sewage rates, land taxes and
emergency services levy on land on which you have
purchased to build a rental property or incurred during
renovations to a property you intend to rent out. However,
you cannot claim deductions from the time your intention
changes, for example if you decide to use the property for
private purposes.I do not have any non deductiable debt.
You may still argue against p&i
Thanks for that Richard.
I think I follow. So the difference in the repayment amounts goes to the principal.So given the opportunity to draw out the equity. Should I do it and place in an offset account?
Ie money would be used for possible investment property deposit. The existing loan is also investment & I have no other debt.
Will increase my repayements about 1K per month.
Terry
I do not have a home loan. All loans will be investment.Does this change things.
