Tax issues on IP

Discussion in 'Accounting & Tax' started by robman, 2nd Mar, 2008.

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  1. robman

    robman New Member

    Joined:
    1st Jul, 2015
    Posts:
    1
    Location:
    Tamworth, NSW
    If one was purchasing an IP, are you beter off paying the stamp duty and legal cost etc out of pocket or adding these into the IO loan.

    My initial thoughts were to put 20% in and pay the cost out of own funds.

    What would be the best way to tackle this.

    What is the best way to structure the finace for tax benefits etc.

    Regards
    Robman
     
    robman, 2nd Mar, 2008
    #1
  2. DaveA__

    DaveA__ Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    580
    Location:
    Sydney, NSW
    depends if you have a ppor, personal loan or non deductible debt? or something else you can take the extra funds from?
     
    DaveA__, 2nd Mar, 2008
    #2
  3. BillV

    BillV Well-Known Member

    Joined:
    19th Jun, 2015
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    Location:
    Sydney
    Robman,
    It depends.
    If you have a PPOR mortgage you will be better off putting those funds into your PPOR loan.
    If you don't have a PPOR loan and you don't need the money for some other reason you can put it into the deal and save the LMI (mortgage insurance).
    The other thing to consider is that if you don't have the 20% deposit
    some lenders will not give you a very good rate so the IP loan will be costing you extra.
    Cheers
     
    BillV, 11th Mar, 2008
    #3
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