Investment Property F.A.Q.
Whose name should I buy an investment property in?
Does a Property Depreciation Schedule have an expiry date?
If two friends/family members are going to start to buy investment properties together, what kind of structure/contract should they have in place prior to purchasing their first property?
If I am thinking of putting my investment property on the market, is there anything I should be aware of? Particularly in the lead up to the end of the financial year?
We purchased our home in 2002. This year we decided to build two units at the front of our home and strata title the land. Our plan is to buy again and not have a mortgage in three to five years. What should we consider to avoid GST and capital gains tax (CGT) liabilities on this project? What applies if we sell one or both units? If we sell our main home and consider living in one of the units for 12 months as our residence, is this beneficial and how does GST and CGT affect us? Should we just sell all to buy our new property?
I’m planning to buy an investment property for which I plan to take a loan from my parents to provide the 10 to 15 per cent of the deposit with the remaining loan from the bank. My parents will give me a loan but want to charge an interest on it. Can this interest payment to my parents be claimed as an expense against the rent, similar to the interest payment to the bank? If yes, what would the Australian Taxation Office require as a proof – for example, payment confirmation in writing from my parents, agreements? What are the implications if my parents agree to charge me a rate lower than market rate?
My question is, we purchased a rental property and borrowed the full 100 per cent plus set-up fees and charges, as well as some money for a managed fund. Come tax return time which part of the borrowings are we able to claim against? The property is negatively geared.
I have an investment property loan for $270,000 that’s interest only, and repayments come out of my transaction account, which is an offset account. The rent also goes in this offset account. My own home loan for $350,000 is also linked to this offset account. Because the rental income is much less than the interest paid on my investment loan, my offset account is being used to reduce my own home loan. At the end of the financial year, I give my accountant statements from the rental property agent as well the interest bill for the investment loan from the bank to work out my tax return. Any other expenses related to the property, i.e. insurance premiums and council rates are also given to the accountant. Please tell me if I am doing anything incorrectly?
What are the implications of renting out a room in my principal place of residence and what percentage of expenses become deductible doing this (loan interest, gas, electricity, council rates, etc.)?