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Finance - “Nightmare on Elm Street”
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The main points that I have learnt are: |
| Your monthly repayments are less than they would be if you were paying off principal as well. |
You can get tax deductions on the interest payments, but none on principal repayments. It makes it easier to calculate the true returns from a property. |
Finance - “Nightmare on Elm Street” |
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I did go close to a finance nightmare a few times in the early years, mainly because I had set the loans at being negatively geared. |
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As you may know negatively geared simply means that you put in the difference between the rent and the loan repayment out of your own pocket plus you pay for the rates and insurance as well. |
This did have great tax advantages as you get to claim it all back and reduce your tax at the end of the year, but in the meantime it comes out of your weekly wage. |
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My Tips and common sense on :Rental Properties
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Of all the tax deductions available to residential property investors and commercial property owners, property depreciation is most often missed because it is a non-cash deduction – the investor does not need to spend money to claim it. A building and its fixtures depreciate whether the owner claims it or not. |
80% of property investors missing out |
Research shows that 80% of property investors are failing to take advantage of property depreciation and are missing out on thousands of dollars in savings. |
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Key word ref:
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