Buying before financial year end (30th June 2010)

[PropertInvestor]

Hi All,

Currently renting. I am planning to buy my first IP in early May. But it may get delayed. I am working and paying lot of tax currently.

So, question here is will it be beneficial to buy before financial year end (30th June) ? or it willn't matter much whether I buy before or after. Please suggest.

 

[Rolf Latham]

If u can pre pay interest it may be helpful

ta
rolf

 

[PropertInvestor]

If u can pre pay interest it may be helpful

ta
rolf

If possible, can you please explain that in detail.

 

[alexlee]

If u can pre pay interest it may be helpful

Not unless he's capitalising interest or his income this financial year is significantly higher (higher marginal tax bracket) than next year. He'd have to figure in opportunity cost of the amount prepaid as well.

If it's a newer or new property, some depreciation items can be taken up front in the first year.

PI, you're not going to get all the answers you need / want just by asking piecemeal questions like this. Mainly because you don't actually know all the questions to ask. May I suggest reading a few basic books first?
Alex