Forum Replies Created
Do I understand correctly that interest charged on an investment property loan is a tax deduction? I think I read this somewhere.
I have managed to find a few properties that would only require about 20k total in purchasing costs then would essentially pay themselves off over the life of the loan.
If I am not after a capital gain in the property value and instead looking to develop: 1. tax offsets to my term deposit interest, &
2: A residual income base in 25 years when loans start paying themselves off.Wouldnt I be better off just keeping my cash in a term deposit and then buying a neutrally geared investment property every 6 – 12 months whilst keeping some cash in reserve term deposits.
The benefits of this would be that the properties would be paying themselves off and it would allow me to purchase another every 6-12 months.
As stated earlier I would really like to know if the interest applied on this type of loan could be used as a tax deduction.
Thanks in advance!
now back to the tennis…
mattsta wrote:since you said you had a low income, if I was in your position, I woudl prefer to get positive cash flow properties to increase your income – and hence your ability to invest in even more properties later on – but that's just my personal opinionI agree – Sorry I should have stated this would be my intentions inititally. I onlly earn 55 – 60 so need to gain more income firstly.
Id like to hear more about the interest only loan with 100% offset account – how it is structured and what are the pros and cons.
I apologise in advance for my ignorance!
