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Thanks for the replies guys,
If my dad was going to help, he would just give me the money upfront for the deposit and other charges and I will have to get into an agreement with him to pay it off in installments ( from the rent I earn from the property). In this case, would this payment to my dad be considered as a cost of the investment as well? (much like bank interest?) so I can claim it against tax?
Terry – The extended contract is what I had in mind in the first place. She is a fair while off retirement so its not an issue at the moment. This way, the extra rent coming out of this place will help me save up the deposit for the house etc quicker.
Cheers
Pubs
Hey,
I'm thinking of getting my dad to join me in this venture. He would provide the cash to get me on 80% LVR so I don't get hit with LMI (which is a lot for this property) and I service the loan. This way we can split the rent someway.
This brings on another question, whats the rent value I put in my tax return? My proportion or the entire amount?
My preference is to do this myself to keep it simple.Thanks for your help,
pubsThanks for the info PI freely,
I should add some more details to the situation.
The new house my mom bought (where we all currently live) was bought with a bridging loan where she put the house I am interested in on equity. So she is currently paying interest off the mortgage, thus she wants to do this asap too ( the bridging loan was taken out for 1 year)
The new property is under her name and is her primary residence, so if she rents the other one out, she will be liable for capital gains tax ( I think) when she sells it.
Another issue is that she wants the the extra money left over from settling her mortgage to buy an Investment property for herself, which means we need to go through a financial institution.
Is there any way I can rent it out under my name while I have come into to contract that I will buy it off her?Cheers
Pubs
