Hi all,
I may be moving overseas to a new job in a few months, but before I accept an offer I need to understand how my IP and current PPOR (which I will rent out) will be treated, and basically if I can financially afford it.
scenario:
one IP (NRAS) in Brisbane which at the moment costs me about $5000 p.a after tax but before the $9800 NRAS payment. Effectively meaning in my current situation, a $5000 positive cash flow property.
PPOR – this will cost me approx $16,000 p.a. Before tax. Assuming loan of $430 k and rental of $450 p.w.
My questions really relate to if I am not earning my usual salary in Australia, can I still claim tax benefits, which would bring the PPOR property to a cash neutral position? I'm just a little confused on the tax implications
I will be overseas for 3 years in a good job with poor pay so can not afford to prop up any significant out of pocket expenses without the potential tax benefits.
thanks
Jase
Hi Jase
Are you sure the PPOR is going to be $16k in the red each year?
What rate is the loan? Is it IO or P&I?
To lower the costs while you're away – I'd set it up as IO if you haven't already.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
The $16k shortfall is before I lodge a tax return. It should be close to cash flow neutral if it was a normal IP. What I don't really understand is can I still claim tax refunds when I'm not living (and earning a salary) here.
….and yes I would consider changing my PPOR to a I/o loan.
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