Forum Replies Created
Richard we are in Perth and our property is in the southwest in Dalyellup near the ocean.
Thanks Ethan. Tax is definitely an issue. I do not want a rental property where we are not getting the benefits of deducting our taxable income and paying tax on any rental income we receive. I would like to be able to negatively gear so that we can reduce some of our taxable incomes.
I am not worried about having an investment property but this will be our first and I’m not sure if I am ready for two right now if the only scenario is to borrow and keep our house and rent it out and use the money to buy another investment so we can negatively gear IYKWIM. I would be a bit concerned about serviceability of two mortgages and it would be a steep learning curve for me as to where to buy, what’s a good investment, how much to borrow ect.
Thank you Benny this is very informative and helpful. I am going to seek out a professional to speak with now that I have a basic understanding. Any idea how I go about finding a good advisor and what job title should be seeking out? I.e should we look for an accountant or do we need someone with a different job title? I agree this should be a subject at school that kids learn.
Thanks.
Sandra thanks for your reply it has given me something to think about. Unfortunately I don’t think we want to repurpose the building as it’s location does not offer a great deal of options for management of such facilities. Also Australian tax law is probably significantly different to the scenario in the USA. I do appreciate your time though.
Thanks Jamie so am I understanding correctly that if I now borrow against our mortgage free property (i.e the bank uses our home as an asset for a mortgage) and the money is used to purchase an investment property I can then for tax purposes treat both as investment properties and not have to pay tax on the rental income of our PPOR due to repayment costs we would be paying for the new mortgage that would be above the amount of rental income we get? Would we be able to claim tax deductions for costs on both properties?
