Good Morning All
I am completing my mortgage paperwork today for my first IP.
I am wondering whether i should have the rent paid straight off the mortgage and use the redraw facility to pay for IP expenses or set up and account for the monthly mortgage payments to come out of?
All advise appreciated
HelenaWhat happens if the rent is late ?
See if you can set up an offset account against the loan and take expenses out of it and have rent paid into it.
Or if you have a non tax deductible home loan link offset account to it so you can reduce non – tax deductible interest costs via offset account.get the rent paid into your offset account attached to your home loan, not the investment (unless you home is paid off). This will save you non-deductible interest. From there you can get the repayments on a direct debit. make sure you investment is interest only too.
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
thanks guys for your comments i will definately do the offset account now… and thanks duckster for the bathroom reno ideas … valuable stuff
many thanks
helena
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