Hi all
I wish to know what is the most tax effective means of borrowing for a purchase of an IP.
My situation is as follows.
? I recently purchased a PPOR valued at $800k. I have a loan of $700k of the purchase price, and $450k parked in an offset account. This means that the net loan amount is $250k.
? My income, including super, is $155k p.a.
? I am single with no dependants.
? I wish to purchase an IP with a value of $730k.
? I expect that I will enjoy rental returns of approx. $650 per week on the IP.
To maximise tax deductions, is there a way that I can borrow the full purchase price, and out-of-pocket costs associated with, the IP (i.e. borrow $770k inc stamp duty)? Can I do so in a way that would avoid LMI?
Thanks as always!
I wish to know what is the most tax effective means of borrowing for a purchase of an IP.
My situation is as follows.
? I recently purchased a PPOR valued at $800k. I have a loan of $700k of the purchase price, and $450k parked in an offset account. This means that the net loan amount is $250k.
? My income, including super, is $155k p.a.
? I am single with no dependants.
? I wish to purchase an IP with a value of $730k.
? I expect that I will enjoy rental returns of approx. $650 per week on the IP.
To maximise tax deductions, is there a way that I can borrow the full purchase price, and out-of-pocket costs associated with, the IP (i.e. borrow $770k inc stamp duty)? Can I do so in a way that would avoid LMI?
Thanks as always!