Find out why using Trust to own investment property – Introduction

Find out why using Trust to own investment property – Introduction By law, a trust is a relationship under which the trustee of the trust looks after the trust’s assets for the benefit of the beneficiaries. If it is set up properly, a discretionary trust may offer reasonably effective asset protection as the beneficiaries of …

Top 10 home loan offset calculators reviewed – are they correct?

Download the home loan offset calculator used in this article (Excel). How does home loan offset work? An offset account is a transaction account that can be linked to your home or investment loan. The credit balance of your transaction account is offset daily against your outstanding loan balance, reducing the interest payable on that loan. With a …

Should I put my money into an offset account or term deposit?

Some of my friends asked me where they should put their money, specifically: 1. the offset account of their PPOR (principal place of residence) home loan or the offset account of their investment property loan? 2. a term deposit or the offset account of their PPOR (principal place of residence) home loan? 3. a term …

Can I claim tax deduction for a special levy the body corporate imposed?

Question: I recently bought my first investment property, there was an extra $2000 special levy charged by the body corporate to repaint the whole building. I presume it falls under repair and maintenance so it is tax deductible, right? Answer: As the building was in need of a repaint when you purchased the investment property, …

Can I claim tax deduction for the expenses happened before the property was rented out?

Question: I recently bought my first investment property in April 2010. Unfortunately it wasn’t rented out until early July. I wonder if I can still negative gear anything (claim tax deductions) for the period that the property was vacant though I received no rental income? Answer: Although you didn’t get any rental income for the …

How to use your home equity to build your investment property portfolio?

Are you looking to build or increase your investment property portfolio but finance is a challenge? You may be considering accessing your home equity to build and grow your property portfolio or you need to restructure your current home loans. Many investors are not sure which lender to choose, or whether the lender has the …

How much does it cost to renovate a house?

How much does it cost to renovate a property? According to Archicentre, the average renovation project in NSW is valued between $75,000 and $150,000. If you want to add an 80-square-metre ground-floor extension with inclusions, you’ll be looking at $164,526 to $310,896. Less than half of the expense will go towards materials. Labour will cost …