Hi to All,

What are the tax advantges of going with either of the options?

Is it true as long as your returns cover your cost you would be able to borrow even if you choose IP over IO option ?

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Hi Ricky,

Although it is on borderline it’s certainly better than being 250K and rent for $150 per week.

Having said that you need to be comfortable of what you are doing. Finding PGP (Positively Geared Properties) is not enough if you are not familiar with the area at all.

My suggestion would be that you should see the area before you commit…[Read more]

Hi to All,

My next questions would be why is what are the tax advantges of going with either of the options?

Is it true as long as your returns cover your cost you would be able to borrow even if you choose IP over IO option ?

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quote:
Michael

yes, most banks assess you on what your current repayments are. So if you are using PI loans you monthly repayments would be higher which would mean you have less money leftover to invest, and therefore less borrowing capacity.

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au

Hi, I’m just a newbie to the forum and i would like to ask what is the most effective option when wanting to keep purchasing properties without running out of borrowing capacity?

As far i understand with IP loan your repayments would be greater but in the long run would pay off your property quicker then IO but in terms of borrowing capacity in…[Read more]

HI,

I would also love a copy of the spreedsheet and thank you in Advance!

My email address is macak_pravi@yahoo.com…

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I have the complete and up to date Land tax rates for all states of Australia in an Excel Spreadsheet. I would be happy to email it to you if you give me your email address.
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