Investment Property and Home Loan Alternatives For Property Owners

Purchasing house to live in as well as an investment property at the same time is definitely an effective manner of utilizing equity, and having any tax benefit while doing so.

Your Central Coast mortgage brokers possess a wealth of experience in the marketplace, although first and foremost they advise looking for any tax advice from a cpa, she states this plan could be valuable.

Many accountants would likely propose that interest on the investment property is tax deductible whereas interest on an proprietor occupied property isn’t, as a consequence the owner engaged property loan would be Principal & Interest while the investment property loan is interest only,” she said. “The strategy is usually to reduce the non tax effective debt (the owner occupied property loan) and keep the tax effective debt (investment property debt) within a maximum.”

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Central Coast mortgage brokers just recently helped customers in precisely the same situation, right after they netted $220,000 from the sale of their home. “They decided that they planned to buy a new house and an investment property that will help generate their money for his or her retirement,” she said.

After getting together with them and talking over their goals and objectives I worked out some numbers and proposed that they could buy a new residence for $500,000.

The clients found it necessary to keep around $26,000 for his or her stamp duty, exchange fees and legal fees
of getting their operator occupied property and around $194,000 was to be part of a deposit for an owner occupied loan.

The investment loan would be $312,000 to purchase an investment property for $300,000 the $12,000 covering the stamp duty, transfer costs and legal fees.

The main benefit of this situation is by buying collectively or purchasing an investment property whilst you already have an owner occupied property gives you an advantage of profiting from collateral within the
operator engaged property to borrow the whole final cost of the investment and expenses and maximise the tax benefits.

I would certainly urge any one considering it to obtain (blank) tax help and advice using their accountant.