All Topics / Help Needed! / Using my equity

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  • Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    August 19, 2005 - 4:41 am

    He is referring to tax deductibility. This is allowed for interest on loans used to buy investments.

    Not on loans for the family home.

    Hope this helps,

    Simon Macks
    Residential and Commercial Finance Broker

    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of miss vmiss v
    Member
    @miss-v
    Join Date: 2005
    Post Count: 11
    August 19, 2005 - 12:30 pm
    So, with 25k is fully deductibe (so if my income is $40k p.a., I can claim back the whole 25k, thus my taxable income now is 15k ?)

    And is there still any interest of the 25k loan fro Lender ABC ??

    Thanks

    Only the interest is tax deductible, offset against any income produced by the loan.

    If you’re worried about split loans why don’t you look into a Line of Credit? Same principle as a separate loan, but with the advantage of being able to pay it of and re-use it again when you find your next property. This can save heaps of time and money on your next purchase – use as deposit, don’t have to reapply for equity loan, pay extra valuations etc.

    regards

    v

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