Forum Replies Created
There are great brokers out there that DON’T charge. They get commissions from the bank. They can also make the whole process of applying for a loan a much nicer experience!
So, with 25k is fully deductibe (so if my income is $40k p.a., I can claim back the whole 25k, thus my taxable income now is 15k ?)And is there still any interest of the 25k loan fro Lender ABC ??
Thanks
Only the interest is tax deductible, offset against any income produced by the loan.
If you’re worried about split loans why don’t you look into a Line of Credit? Same principle as a separate loan, but with the advantage of being able to pay it of and re-use it again when you find your next property. This can save heaps of time and money on your next purchase – use as deposit, don’t have to reapply for equity loan, pay extra valuations etc.
regards
v
I have just put down a $1000 deposit on a $300k property, but all my other deposits were $100. I haven’t had any agents query this as it seems to be an acceptable practice. It sits in a trust fund until settlement anyway, and if there is a problem with the contract it keeps more money in your hand to use on another property.
cheers
v
Originally posted by Property Passion:GPS wayne and shake, thankyou for your advice, i really do appriciate it.
just a couple of questions, firstly what are P&I loans and what are intrest only loans?
Also if i dont try and pay of any capital, and just cover the intrest, yes it will free up some money, but IF intrest rates go up then am i at risk of losing the property, or at least getting myself in over my head?
feedback would be great ![biggrin]
All my investment loans are interest only. If you’re worried about rates going up just get them fixed. Most loans also allow you to add lump sums to interest only loans so you can pay down the principle, or have extra money sitting in an offset account.
Hope this helps.
V
Originally posted by elysean:Being 1,2 or three bedrooms makes little difference if the product is in the right position, but you need to have the furniture package in it to maximise the rental return. Also as the unit is 3.5 years old the internal depreciation will be almost done, so the furniture package will help with the deprecitaion. Regards
Property Acquisitions for developers and investor from; Kevin
The fact that is in only 3.5 years old gives it GREAT depreciation. I’m getting good depreciation on a house that’s over 100 years old.
cheers
v
I found Jan Somers and Margaret Lomas’s books very handy. Also there are dedicated books on the subject of property and tax.
cheers
v
Yasmina,
My first 2 investment properties had me up all hours of the night with the what-if’s, but you have to remember the what-if-I-don’t’s. As long as you have done your due dilligence don’t worry too much. At least enjoy the butterflies and lack of appetite[biggrin]
I’ve just signed the contract on my third investment yesterday, and it’s not as nerve wracking, but I kind of miss that too.
Good luck with this and any future purchases
V
Don’t forget that their rates and body corp are deductable too.
And also any repairs that need doing might fall under that catagory too!
cheers
v
I have used PIAfpu for about 3years now and swear by it. As per any program, it takes a while to get the hang of it, but isn’t difficult. There are great reports and graphs that you can use and take to the bank. I have it open when I’m surfing realestate.com to quickly gather information on possible properties. It’s also a tax deduction.
Regards
VI was under the impression that the tenant had a legal obligation to pay the existing lease until it ran out or a replacement tenant could be found, which ever is first.????
I have been looking for quite a while at the Isa also. Many people think that it is not a great idea (but if we listened to everyone’s opinions we’d probably not get anywhere!) I am looking at a block of flats personally.
Have you come across any problems with your negotiations?
