HELP 3 Properties Positivly Geared- Need Direction

[HotRod]

You are making money and being able to hold the IPs at the same time.

If you pay tax, you are still in front.

If you made $10K nett, you'll pay about $4K tax on that.

You are still $6K in front.

If you want to lose $10K, you'll get about $4K back from the tax man.

But you are still $6K down the gurgler.

You'd better get depreciation reports done on all three.

Might find your $4K tax bill could reduce to zero.

Not bad, earn $10K and pay no tax.

 

[Scott No Mates]

Don't want to be in the same position in 5 years time where same amount is still owing and we have properties but bank really owns them on paper... and we are not getting a return tax wise ? Thoughts

Kym,

your loans are interest only so you will never pay these loans off whilst you are only paying the bank the interest . What will change will be the proportion of LVR ie how much you owe vs how much the properties are valued at (especially if they double in price since you bought them). This can be used in two ways - buy more investments or sell one to pay out the others and be debt free.

Many here would be jealous to have your problem. (What is the problem other than having to pay tax ie you are making money - with $200k income, you may be able to find another property which will cost money to keep ie negatively geared). To date you have selected well and in a rising market you are making money.

 

[Witzl]

So you are concerned that you have INCREASED your income? Sorry does not compute.

Depending on your long term goals, and your personal situations (kids, family home etc), if i were you I would consider pulling some equity out of one of these investment properties and buying another 1 or 2 properties - so long as whatever you buy, you are able to afford any possible shortfall on rent vs costs on those new purchases.

I *was* in a similar situation a 18-24 months ago.... but then we had our 1st kid, and so the focus shifted from getting another IP to securing a more suitable family home, which we've just done.
Otherwise, we would've bought another 1-2 properties by now.

Instead, we've sold 2 IPs, bought a big PPOR (settles in 6 weeks) and are turning our current PPOR into an IP. In about 5 or so years time we'll consolidate things and look at buying more IPs.

 

[Emo21]

look to be in a good position so wouldnt be worried about paying the tax on $10k as said before you are $6k ahead after paying tax. The best option is to look at all the deductions and make sure you are claiming everything you can. No 1 priority would be a depreciation schedule for all 3 propertys and if you hadnt had it done for IP 1 and 2 get you previous year tax return amended to allow for the depreciation.
2 nd priority get a new accountant who knows what hes doing