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Tax issues on IP

Discussion in 'Real Estate' started by robman, 2nd Mar, 2008.

  1. robman

    robman New Member

    Joined:
    13th Dec, 2007
    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
     
  2. DaveA

    DaveA Well-Known Member

    Joined:
    19th Feb, 2007
    Posts:
    617
    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?
     
  3. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    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