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  • Profile photo of timktimk
    Member
    @timk
    Join Date: 2004
    Post Count: 1
    March 2, 2004 - 3:52 pm

    A simple question regarding negative gearing:

    I am considering purchasing an old property for land value and intend to demolish the house, subdivide and build 2 new houses that I will rent out. A loan will be secured for 100% of the initial purchase price plus the cost of the two new residences.

    Can the entire loan amount (i.e initial purchase price plus new construction costs) be negatively geared once the properties are being rented?

    Thanks for your advice

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    March 2, 2004 - 11:31 pm

    If they are both rental properties then the answer is yes.

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    March 2, 2004 - 11:40 pm

    Simple answer to a simple question – Yes

    Cheers Richard
    richard at fhog.com.au
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Australia's leading private lender

Viewing 3 posts - 1 through 3 (of 3 total)

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