- Jeremy SheppardParticipant@jeremydsrdataJoin Date: 2015Post Count: 0
For decades it’s been said that “rent money is dead money”. The “follow-on” has always been that you should aim to own your home rather than pay the landlord.
But it could be argued that paying home mortgage interest could be more “dead money” than rent money.
What are the chances that the place you want to live (or need to) also happens to be the best place to own an investment property?
Given there are thousands of suburbs around the country, it’s unlikely where you want/need to live is also the best location to invest. It might be better to rent where you want to live and invest in the best area for growth and yield, that suits your budget.
https://selectresidentialproperty.com.au/Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338
Put property in a discretionary trust, live there and sign a lease and pay rent to the trust, run a business from home and the rent becomes a deductible business expense as a bonus.
Seek advice from an accountant first, as always.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Put property in a discretionary trust, live there and sign a lease and pay rent to the trust, run a business from home and the rent becomes a deductible business expense as a bonus. Seek advice from an accountant first, as always.
This is something I usually suggest people avoid doing. Loss on the main residence exemption, land tax in many states – such as NSW where it would cost $8,000 per year for land content valued at $500,000.
It would be better, usually, to own the main residence and rent it out, using the 6 year rule, and rent somewhere yourself where you could sublease part of the property to the company operating the business. You keep the full main residence exemption, for up to 6 years, and still get a deduction for some of the rent.