My Husband and I are looking at making the leap and using our existing house as an investment property. We now have 2 young children and are looking to upgrade to a bigger house. Can I have some advise if this is a good thing to do with such a young family?
We both work full-time.[confused2]
Hi Nessa,
There is nothing wrong with what you are considering, for many property investors this is how they got started.
Be aware that you will not be able to claim any costs associated with the new property as it is considered your principle place of residence (PPOR) and all rates, taxes, interest charges etc are not deductible.
I also recommend a chat to a good broker so they set you up with a good loan structure at the beginning.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Nessa,
Since your borrowing against your current property, you may be able to use some from that for tax deductions.
Don’t keep your family cramped up – if you need a bigger houes, then get one – but don’t go too big. See if your current PPOR is worth keeping as an investmenst. It might be better selling it and using it for your new PPOR then use the equity in your new PPOR to invest in 2-3 smaller investment properties.
If you both work full-time, then it means that your options are greater to choose from.
Best Regards,
George.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
Originally posted by geo:Since your borrowing against your current property, you may be able to use some from that for tax deductions.
Hi Geo,
Just clarifying for Nessa.
If the purpose for the new loan/refinance is to buy a new home then this will not be allowed as a deductible expense.
If however the new loan is for investment purposed then the interest will be a deductible expense.
A lot of people mistakenly believe that if a loan is secured against an investment property then the interest is deductible. The ‘test’ is whether or not the loan is for investment purposes.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Thanks to all who replied[biggrin]
I will be able to take all your info with me when we take the next big step in having an IP and a bigger house for the family.[blush2]
Nessa,
Can you afford NOT to buy Investment property?
Or to invest in something else?
Cheers,
Aceyducey
In theory, there is no difference between theory and practice. But, in practice, there is.– Jan L.A. van de Snepscheut
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