Buy dividend shares - borrow against IP security

I'm intending to borrow extra cash using my IP as security to buy domestic shares that pay dividends and thus claim this on my next tax return as a deduction.

Currently my loan payment is low and my rent is high and thus need to make my financial situation more tax effective.

Presuming this idea is still viable in accordance with current tax laws, can you suggest some good stocks to buy. I realise this is a property forum but acknowledge that there are some very astute investors on somersoft who probably have good knowledge of domestic stocks.

As per my other thread I intend to demolish and construct a new garage which will also improve my tax situation. Acquiring shares using funds from refinancing seems like a good idea as it means that my financial situation is more diversified- as I will hold property, cash and shares....

Thanks for your opinions on this.
 
I'm intending to borrow extra cash using my IP as security to buy domestic shares that pay dividends and thus claim this on my next tax return as a deduction.

Currently my loan payment is low and my rent is high and thus need to make my financial situation more tax effective.

You do realise that you will have to declare the dividends as income right?

As per my other thread I intend to demolish and construct a new garage which will also improve my tax situation. Acquiring shares using funds from refinancing seems like a good idea as it means that my financial situation is more diversified- as I will hold property, cash and shares....

Thanks for your opinions on this.

Garage is on PPOR or IP?
 
Anyone else confused with how demolishing and constructing a garage will improve his tax situation? I hope someone is going to live =-)

Focus on making more money and paying more tax =-)
 
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Anyone else confused with how demolishing and constructing a garage will improve his tax situation? I hope someone is going to live =-)

Focus on making more money and paying more tax =-)

Yeah I'm also confused as well.

The ATO link seems to cover fixing an environmental safety issue rather than being an authority on garage demolitions.
 
Yields have changed as interest rates have fallen. For example Bank shares were once 12% then 9% and now closer to 6%. I cant see a massive negative to offset the rental with this strategy. Its possible its even +ve geared just on shares. BUT then you are also exposed to risk that the high flying CBA falls from present levels. Buying at the top may be a really poor strategy.

All I see is a desire to drop taxable income. That's not a investment strategy.

Can you spend the $ on a GF ? Increase value ? An extension ? Improvement to life rents and value ?
 
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