Recent content by Maverik

” Similarly, if you take out a loan to purchase land on which to build a rental property or to finance renovations to a property you intend to rent out, the interest on the loan will be deductible from the time you took the loan out.” This is a quote from the ATO rental properties guide.

If the intention is to build and later rent it as investment then potentially yes. I am not sure on costs other than interest; however either way you can and should check on the ATO website. There is a section in the specific tax rules for investment properties that outlines vacant land.

how dare you sound so black and white with your opinion's and also mis quote Newton whilst trying to appear as intelligent. "every reaction has a equal and opposite reaction" ???......thermodynamics?????. Be carefull you do not fool anybody with your reference. You also say you do not suffer...

Hi Kim, Sorry for assuming and asking some obvious questions. I just prefer to make sure so we all have a clear picture when giving input. I understand not wanting to move out so quickly however you also mention building equity to buy again soon? Unless you rent a more expensive place...

I know many people that very wisely choose to rent and invest this way. Mostly as a short to medium term plan so that they have greater balance and choices much sooner in life. It is also an option for many people wanting to buy property when it may be too expensive where they need to live.

Hi Kim, That strategy is on the right track; however did you realise that you only need to live in for 6 months sometime in the first year to claim FHG's? Also if you move out(and rent at a similar amount) whilst it is still negative geared you will get some tax saving instead of none...

Spot on. I/O keeping surplus in offset.This can make a substantial difference if it later becomes an IP. Also the interest saving is essentially the same so unless you spend that "principal" sitting in the offset it's definitely the way to go. A client of mine ignored this choice i gave...

What will the banks do with that extra money??

...the parents or the kids!!! or you could get the parents to mind the kids a few days a week so that allows you to make a bit more $$ to manage with kids? Or have 2 kids and sell one? (just kidding!!, i miss my dog after 1 day away from her!)

The frustrating thing is that the political problems and lack of forward planning in many ways leads to pressure on housing afford ability. I would much prefer to see a balance on supply/demand; however it does not seem likely for a while. So much fantastic land on the outskirts that...

Mona Vale also has a sushi train just opened!! Also a few more jewelers, another chemist(thats 7!) These retailers agree with your demographic outlook. What street is the land Michael? If it is Golf Ave then i want one! (best spot in Aus!!)

You are just making it clearer that you are missing the point. Thanks. We are not talking about ourselves or others with a broader understanding of different investments. More so people getting started who would fairly assume that a Financial Planner would offer and explain the benifits...

You are both missing Petal's main point. The most widely known way of getting financial advice very rarely advices on the biggest investment most people will have. Simple.

It can also be very useful instead of bridging finance.

Fair enough. I still believe more people should use a Financial Planner and wish more Planners offered direct property options.