My motherinlaw has a property in Sydney. She lives in Singapore. The fixed loan is coming to an end in Feb. The question is whether to go onto a Standard Variable loan or discharge the loan? so it becomes cash positive. It is currently rented out $1400/mth She is thinking about doing short term rentals only and then use the apartment herself when visiting. What tax level would be incurred? What other problems would she encounter.
Hi.
I guess it would also depend if she needed the money (that she would be using to pay off the loan) or not. There is an opportunity cost as the money could be used elsewhere.
What tax rate she would pay would also depend on if she is a resident for tax purposes, and what other income she has.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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