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Amanda

Discussion in 'Introductions' started by amanda6, 19th Jan, 2011.

  1. amanda6

    amanda6 New Member

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    19th Jan, 2011
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    Brisbane
    Hi... first time I've ever joined an on-line forum. I however read some of the advice given by members and thought it was time to join in and not just sit on the side line.
     
    Last edited by a moderator: 19th Jan, 2011
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Hi Amanda :)



    Johny.
     
  3. amanda6

    amanda6 New Member

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    Hi Johny,

    I don't really know how things work on a forum, but thanks for saying Hi.
    Amanda
     
    Last edited by a moderator: 19th Jan, 2011
  4. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Ask a question. If I cannot answer it, someone else will. :D



    Johny.
     
  5. amanda6

    amanda6 New Member

    Joined:
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    Well....I was reading in a forum where a member was asking about renting out their own home (which had quite a large mortgage on it) and buying another. The majority of the replies to this post, were "you will probably end up with too large a mortgage, which is a bit risky in the current market" (as this member also had a young family).
    We are also looking at buying an Investment property, but only have a mortgage of around $70,000. We were thinking of renting out our house and moving to the home we purchase. If our current home is worth say $580,000 can we claim this entire amount on tax, or only the $70,000 that we owe? (thankfully our 4 kids are in their late teens) thanks Amanda
     
  6. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Well you got me! I am not a property person. In fact I am a property bear. I believe that Australia has a property bubble. I even sold my own house.

    Now I understand that I am very alone in this view. Houses have gone from 3X annual wages to 7-9X. Something has to give. It just can't go up forever. The only positive thing I have to say is, if you get in, pull out Before any drop.


    Johny.
     
  7. amanda6

    amanda6 New Member

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    Thanks for your point of view Johny.

    If I ask a question... should I do it in one of the forums that are relevant
    to my question???... as from what I understand (in my very limited
    understanding at the moment)... is that I have posted my question in the
    Introductory Forum?
    Amanda
     
  8. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
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    Location:
    SE Queensland
    Yes, pick the appropriate Topic. Creative headings will get more response. Here's the trick, Keep your thread on screen. Once you start getting answers, your thread will reach critical mass. Then people may reply after 2, 6 and 12months (if it is an interesting thread).

    Are you sure you don't want to know about index funds? :eek:



    Johny.
     
  9. jrc77

    jrc77 Well-Known Member

    Joined:
    26th May, 2008
    Posts:
    147
    Amanda,

    In summary, probably no. You can only claim the amount left on the loan that was taken out to buy the house you are receiving an income from. So from what you said, you would only be able to claim the interest on the $70,000.

    Now this is assuming that the $70,000 you have left is "uncontaminated". ie. you haven't ever made redraws on the loan for other purposes (buying new tv, car etc). If the loan is contaminated it might be an even smaller figure that you can claim the interest on.

    The answer would also be different is you were using an offset account to put extra into rather than making repayments on your loan. Have a look around for threads on offset accounts and tax deductability for more information.

    Regards,

    Jason