- kevParticipant@forwellsJoin Date: 2015Post Count: 7
Was hoping some people could give me options as my new account is telling me things but not what i should do.
We are planning on starting to buy old houses and repair them for the rise in equity but not to sell but to sit on and rent out .
With the tax laws i seem to be finding it confusing on what i can and can not claim and when .
The start up plan is .
But small house , 3 bedroom , that comes with a two story brick building on the next door block . Both on separate tiles but combined for rates .
The cost is $110,000. Borrowing $115,000 total but also borrowing $50,000 for repairs and rebuilding .
The main house was rented ( just moved out ) . The plan is to tidy this up and then re rent .
I am being told i can not clam these cost until i sell , which if all works out as planned we will not .
The first floor of the brick building will at first be turned into a apartment , within 3 months. Then rented for about $250 week .
The second story , which we haven’t made up our minds on is also to be a flat and rented at $220 a week .
So all up , hoping to invest $165,000 for a return of about $34,000 before cost of about $12,000.
Then it will be to move onto the next one . Already have one in mind . Small 3 bedroom . Well under priced but needs repairs , all of which i could do for little cost . This would increase its value but also its rent long term .
So what is the best way to do this ? What can i claim ? What cant i claim ?? When i repair these proprieties what can i claim ? Work related as it will be like a job ?
Thanks for any help .