All Topics / Help Needed! / My first home and planning to be investment
Hello all,
This is complicated but i really need advice here…
I’m 24yrs old, just finished uni and am working for 9 months now in an area 1hr outside of Sydney. I am currently renting.
In the next few days i will sign for the purchase of my first home. I have bought this because it is near schools, water, etc. Basically i believe that there may be good capital growth in the long run. It is an old property which will need a moderate amount of renovations. I will buy it for just under $300K. Current tennants will remain there until April ’05 which is when i intend to move in. They are paying $250p/wk.
My question is, since i am renting out in the first 5months does that mean that my interest repayments are tax deductible in this time? I will move in within the time period allowable for first home owners. Also does that mean that any home improvements within the first 5 months is tax deductible? As in new carpets, air conditioning system etc?
I need to know this because my tax bracket is very high and any way to reduce it would be of great benefit to me. Plus i will move in eventually and so i am going to renovate anyway; might as well make them tax deductible!Thanks for reading and please let me know if i’m totally off the mark with this one as this is my big entrance into the game you all love![grad]
The rent will be deductible over the period it is rented.
Any repairs to bring it back to the standard it was prior to being rented would be deductible.
Any improvements would not be deductible.
I suggest that a few minor repair claims might be OK but I wouldn’t claim any of the reovations costs – certainly not new carpets, aircon etc.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
There may be captal gains tax imposed on the period it is rented out if you do not first live in it. If you hold for the long term this would be minimal anyway.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.