Is there a percentage amount of your mortgage interest that can become deductible for tax purposes, and if so, how is this percentage worked out?

Can you also claim things like depreciation on a new kitchenette as well?

Cheers fudge111

That is great advice. Will definitely ensure we put the interest offset account into place.

with regard to the offset account, does that enable you to claim deductions on your taxable income, or is it merely a saving on the interest you are paying on the loan and therefore increasing cash flow to the property?

Cheers fudge

I am based in Melbourne…

My wife and I have just bought a block of land and are going to built a brand new house to use as our PPOR.

We are yet to buy an investment property so this is the beginning of our property investment career so to speak.

My question is, whose name should we put the land, house and loan into?

Which of these dictate whose income the…[Read more]

If its not to much trouble I would also love to have a read of your article. My email is fudgetc@hotmail.com

Thank you kindly

Just wondering what everyone’s opinions are on completing your own tax return as a property investor, becoming your own accountant essentially.

Does anyone already use etax to complete their property investing tax return? How hard is it and after how many properties would it become too cumbersome to use?

I know there can be many…[Read more]

Does this reduction in the cost base also include depreciation on all the fixtures/fittings/carpet or just the depreciation on the building as a whole?

Cheers

fudge111

That really does answer my questions well…

I will definitely use a quantity surveyor to maximise the amount of depreciation expenses, but just wanted to get a general idea about how the system works.

Regards

fudge111

I now understand depreciation a lot better. I was under the impression that it was all about predominantly how new the house was. It is good to know that the amount that you can claim can potentially be more on an older property than a newer one.

Cheers

fudge111

I have also added QS = Quantity Surveyor

BA = Buyer’s Agent
CC = Cross Collateralisation
CF+ = cash flow positive
CF- = cash Flow negative
CG = Capital Gains
CGT = Capital Gains Tax
DS = Depreciation Schedule
IO = Interest only loan
IP = Investment property
LMI = Lenders mortgage i…[Read more]

I am just in the preparation stages and am yet to buy my first investment property.

Thanks for the advice on who to use for a depreciation schedule.

Would it be fair to say though that if the house is built before 1985 you would not get the same depreciation benefits as properties post 1985?

If so, that would be a huge factor in…[Read more]

I was wondering if anyone could give me a bit more information about the way the depreciation on investment property’s works.

I have only the basic knowledge thus far. I have heard that it is 4% for houses built between 1985-87 and for houses built from 1987 onwards 2.5%

1) Is this % the value of the whole property,…[Read more]

What options do I have if this is possible?

Thanks everyone,

fudge111

This may be a stupid question but I am yet to start my property investing portfolio and am new to bank finance…

Will the banks let you access the equity in your parent’s home if they have not used accessed it for any other assets, or do they only let you access your own equity to refinance?

I think what I am trying to…[Read more]

I am not 100% sure if my maths are correct but I think they will be pretty close…

fudge111

I have a detailed spreadsheet that I am working on at the moment but I am yet to add the option of the offset account into the calculations.

I will attempt to add an offset facility to the spreadsheet for IO loans and see how I go. I will have to do my research first and hopefully I’ll be able to pull it off, but I can’t…[Read more]

It’s good to know what the different options are.

Cheers

fudge111

I have a question as someone who is still learning the ropes.

If my wife and I invested in an IP and the loan was secured under both our incomes is there any way that the negative gearing can be applied to one income and then the capital gain after sale be applied to the other income.

Or are the rules that whichever…[Read more]