All Topics / Help Needed! / 2 quick questions

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  • Profile photo of oneiriceroneiricer
    Member
    @oneiricer
    Join Date: 2007
    Post Count: 56
    April 6, 2009 - 12:25 pm

    Hi,

    Two quick questions for the property experts:

    1) Is stamp duty for an investment property tax deductible? (this is a huge fee – $10,000 + so would help massively if it was tax deductible)
    2) Does an offset account reduce your monthly payments?

    i.e. your loan is 100,000 and you have a 100% offset account.
    Currently a 100,000 loan will have a monthly payment of $584.49 (interest and principal at 5% for 25 years)

    If you suddenly chuck 10,000 into the offset account, does the interest calculate on 90,000? (483.14 per month?)

    thanks

    Ken

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    April 6, 2009 - 2:14 pm

    1) only against the capital gains when you sell

    2) it depends if you have PI or IO loan. If PI then the monthly repayments are usually the same, just more comes off the principle with money in the offset. If IO then you are going to be paying less each month.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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