Advice about W R T Investment Property Purchase

prince10 on 17/07/2017 - 13:14
Last edited 17/07/2017 - 13:57 by 1 other user

Hi,

I am looking for advice from the group.I am not able to make my mind up to get another loan for an investment property.

The property is in Pallara QLD and it is for investment purpose only. It is a house and the land package and cost of purchase is $520K.

I already have a existing mortgage of $510k on the house I am living in.

I earn $98k net, and don't have any other cc or loans to pay.

Any advice will be much appreciated.

Thanking you

Kind Regards

Comments

Skramit on 17/07/2017 - 15:49

+1

You need to do the maths:

520k Investment property
104k Deposit
416k Interest Only Loan @ 8% (factor in interest rate rises)

Interest Payments p/month = $2773 (Can you cover this on top of your existing mortgage???)

Tax deduction per year $33,280

Net taxable income reduces to ~$65k (pay much less tax).

The add income from rent of say $15000 @ 300 p/w Taxable income $80k.

Less costs of maintenance and repairs and depreciation….Hopefully you can see the thoughts you need to have.

In summary - go an see an accountant and get them to do the proper sums for you. It will be worth the $200. But hopefully the above gives you an idea of why IP are great for reducing tax.
prince10 on 17/07/2017 - 15:57

Hi

thanks heaps yes u have given me some idea on what I need to think about.

really appreciate your time and effort.

thanks again :)

P
JIMB0 on 17/07/2017 - 17:42

+2

Oh great, another bragpost.
prince10 on 17/07/2017 - 19:08

Hi

My post was no means to brag about anything in anyway ,

I am not good at accounting, and i wanted a neutral opinion from a person with no self interest of any kind.

SKamit has provided that and i appreciate his time and effort.

cheers
P