Forum Replies Created
Derek,
Thanks for your reply..
could you please spell out what you mean when you say “..Set up a line of credit secured against your home and use these funds to pay for the deposit plus purchasing costs. You will need total loan of around 105% of the property – 25% comes from your line of credit and the balance from separate loan”.. I think I know what you mean h/ever , if you reply it will make better sense to me..” Thanks to allI am currently in the market of researching -/+ gearing and seeing what works for my situation. I am looking at an IP, and am trying to work out a formulae, on what I should be purchasing (cost of house), how much rent, what loan amount etc. I realise that you only realise a gain when you sell, h/ever I am still trying to graple with the tax implications in owning an IP. I have read the articles on the site and just need to be able to use a calculator / formulae. Anyone out there that can help, much appreciated.. In the mean time I will continue to search and read.
Additionally, I have seen and heard how you can complete a ‘PAYG Income Tax Withholding Variation Application’ with the ATO, and have your employer reduce the amount of tax you pay on your salary, based on your expected amount of expense you are going to incur on your IP. Therefore if you are on the 48.5% tax bracket, and you are able to expense on the IP enough to come down to the next tax bracket, then your employer, will reduce the amount of tax thus increasing the $ after tax in your pocket. You must realise that you need to prove this the following tax year.
