Getting Started

[WebBoard]

From: Mike .


Investment Advice
From: Steve
Date: 2/29/00
Time: 10:23:32 PM

My wife & I own 2 duplexes. We live in one (paid off)& her parents in the other side(rent free as they paid $xxx up front, $85,000 outstanding). Should I be investing with a further property and can I achieve I tax breaks on the second duplex without any real income from it?

 

[WebBoard]

Les

Reply: 1
From: Mike .


Re: Investment Advice
From: Les
Date: 3/1/00
Time: 10:31:46 PM

G'day Steve,

Find the article titled "Depreciation Allowance" from early Jan (10th?) and check for the reference to the ATO's handbook. Once you make the booklet available on your PC, check page 15 where they refer to "non-commercial rental". This should gives you a "heads up" on the ATO's attitude toward "family rentals". From that you can get an idea of whether or not you could claim anything of your parent's duplex.

Re your situation, with your duplex paid off, you can borrow against it to purchase more properties, and gain full Tax Deductions on the whole loan. And, YES, it seems to me like you are in the position where you could consider purchasing more property. Though details are sketchy, you have Equity there - now it depends on your personal situation (do you want another? can your situation handle another if cashflow is negative? do you want only positive cashflow? etc.)

Certainly there a bunch of different thinkers spread throughout this forum (ain't it great?) so find one whose ideals/ways/etc. meet yours and go with them. And come back with other questions if you wish - we're always happy to help someone who's out there helping themselves.

Regards, Les