is it better to fully pay your mortgage on your property be
Question: is it better to fully pay your mortgage on your property before renting it, or is it a better option to have a small mortgage on it, if your thinking of buying another home to live in. Kim.
I'm assuming that the property is being purchased as an investment, That being the case a small mortgage may give you the ability to negatively gear the costs etc. against your taxable income, thereby reducing your tax or increasing the claim you can make at the end of the financial year.
Management fees, letting fees and maintanance are all able to be used as deductions.
It is always wise to check your own specific details with your accountant.
Good luck
Tim Thredgold Sales Partner & Corporate Auctioneer
1 comment:
Hi Kit
I'm assuming that the property is being purchased as an investment, That being the case a small mortgage may give you the ability to negatively gear the costs etc. against your taxable income, thereby reducing your tax or increasing the claim you can make at the end of the financial year.
Management fees, letting fees and maintanance are all able to be used as deductions.
It is always wise to check your own specific details with your accountant.
Good luck
Tim Thredgold
Sales Partner & Corporate Auctioneer
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