Hello,
My income is expected to double from $90,000 to $150-$180,000 this financial year, so I am considering buying another IP (I currently have 1 IP). My budget is around $400,000-$500,000. In order to lower my tax, my question is this?
Am I better off buying a low-yielding IP (ie. old house in blue-chip location on large lot) or look for the low-yield, high-depreciation IP to benefit from say: $25,000 in deductions against my high income?
If I try to buy a near CF+ or neutral-geared IP, then my deductions won't be as high, is this correct?
Many thanks in advance.
Col
My income is expected to double from $90,000 to $150-$180,000 this financial year, so I am considering buying another IP (I currently have 1 IP). My budget is around $400,000-$500,000. In order to lower my tax, my question is this?
Am I better off buying a low-yielding IP (ie. old house in blue-chip location on large lot) or look for the low-yield, high-depreciation IP to benefit from say: $25,000 in deductions against my high income?
If I try to buy a near CF+ or neutral-geared IP, then my deductions won't be as high, is this correct?
Many thanks in advance.
Col