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From: James Wallner
Dear All,
2 quick questions:
1/. Have just taken out an interest only loan at 5.49% for the next 5 years. Was informed can only get it for this period and then MUST revert to an interest and principle loan. Can not renegotiate another interest only loan. Is this the norm for IP loans, or at the end of 5 years do I need to take my loan elsewhere for another interest only period?
If I pay principle my cash flow is affected significantly and will prevent me buying again for several years (according to my reading). Is my thinking right to pursue interest only for as long as possible?
2/. Have bought in the ACT and was told by an 'unexpert' that my property stamp duty was deductible from my 1st years income. I have checked the ATO website and got the booklets, but it appears stamp duty is simply added to the base cost of the property and then simply reduces the capital gain. Before my appointment with an accountant thought I would try and equip myself with some knowledge so I don't sound like the novice I am. Are there any special rules regarding stamp duty in the ACT?
Many thanks,
James
Dear All,
2 quick questions:
1/. Have just taken out an interest only loan at 5.49% for the next 5 years. Was informed can only get it for this period and then MUST revert to an interest and principle loan. Can not renegotiate another interest only loan. Is this the norm for IP loans, or at the end of 5 years do I need to take my loan elsewhere for another interest only period?
If I pay principle my cash flow is affected significantly and will prevent me buying again for several years (according to my reading). Is my thinking right to pursue interest only for as long as possible?
2/. Have bought in the ACT and was told by an 'unexpert' that my property stamp duty was deductible from my 1st years income. I have checked the ATO website and got the booklets, but it appears stamp duty is simply added to the base cost of the property and then simply reduces the capital gain. Before my appointment with an accountant thought I would try and equip myself with some knowledge so I don't sound like the novice I am. Are there any special rules regarding stamp duty in the ACT?
Many thanks,
James
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