Do I have to settle, this year to pre-pay interest

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hwd007
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@hwd007
Join Date: 2002
Post Count: 247
June 16, 2003 - 3:31 pm
[?]Do I have to settle, this financial year to pre-pay interest for next year ? I have this problem where by, settlement may not occur within the next two weeks. Does this mean I will miss out on the opportunity to pre-pay my interest ? or are these two events independent ?
For example do I just have to borrow the money this financial year and then pre-pay the interest before I settle possibly next financial year in 3 weeks time ? Solicitor says they may not be able to settle as it takes 14 days to do the searches. I am running boarder line here.
If I cant pre-pay I will loose $6000 in tax refunds against this years income.
Urgently seeking Advice.
Thanks,
Dave
Ozbroker
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@ozbroker
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Post Count: 16
June 16, 2003 - 3:34 pm
Dave
You need to settle within this financial year.
Regards
Mark
hwd007
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@hwd007
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June 16, 2003 - 3:43 pm
Mark thanx. Gees that was a quick response. One can see how this property thing can become an obsession. People on all hours of the night.
cheers.
trueblue
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June 17, 2003 - 12:48 am
I think you also need to have a tenant in place as well. Otherwise, there is no income to offset your expense. But check with your accountant.
Terryw
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June 17, 2003 - 12:56 am
I don’t think you would need a tenant in place as long as you had the property up for rent. ie you were trying to find a tenant.
Terryw
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Ozbroker
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June 17, 2003 - 12:42 pm
As Trueblue and Terry said, the property needs to be up for rent. A sign in the yard indicating the property is available for rent would seem a good course of action, and perhaps a photograph of it in place, dated.
This still relates to the property settling this financial year.
Regards
Mark
hwd007
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@hwd007
Join Date: 2002
Post Count: 247
June 18, 2003 - 2:39 pm
Thanks People. I put an add in the Brisbane TradingPost yesterday, so I guess thats proof enough ? Even though I aint purchased it yet.
And may not even get to the way the bank is going on about it. I have signed the contract of purchase though so i could be in deep SH_T
Well I guess when u pay $229K for a 1 bed unit with study and the selling agent says u could get $250 a week, the bank is likely to raise eybrows. That said I have seen others advertised for that and it is brand new and close to the CBD.