My accountant told me that when my investment property settles I have 30 days or till end of month before bank interest is charged against my loan. Is this true ? You see it will take about 4 weeks before the tax department processes my section 15-15 tax variation application and I then receive the tax refunds in my pay cheque. If I don’t have a tenant by settlement, and I don’t have the tax rebates coming in, then it would put greater financial strain on my ability to make the interest repayments. I would rather avoid this situation. I am new to property investment. Are there any measures I can implement to minimise the risks associated with these types of issues ?[
]Hello again Hwd007. You’ll find that as soon as you settle you’ll accrue interest on the balance daily, it is at the end of the month however when they add it to your balance. Hope that makes sense.
Hello hwdoo7, yes, your first payment is due a month after you settle, eg we settled on a property 16/1, first payment was 16/2, and then 16th each month.. Sounds like maybe you are buying a -cash flow property and need the tax variation quickly. Is it an I/O loan, when your monthly payments would be a little less than P & I. Also I guess you would already be looking for, or have an agent, looking for a tenant. With all our properties, they have been tenanted or tenant waiting to move in. Most pay for themselves. Hope this helps.
Anna2
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