Quote:
Originally Posted by En1gma
Hey Paul,
As my child is growing up, we wanted to have a house to let him grow up in and also because it is close to his intended primary.
The townhouse itself is brand spanking new and is ~14km from they city (silverwater/newington)
Thanks on the tip for PayG. It will end up slightly - geared so will have to remember that. Dont want the tax man knocking on my door.
As for the offer, it was accepted today so, now it is just a matter of paperwork and settlement. Now to go shopping for a pier.. I mean sofa...
Rob
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Rob,
regarding the -ve gearing, the payg variation I mentioned means you'll pay less payg tax. You can claim the difference between cost (meaning the part of your repayment that is interest as opposed to capital - along with any other routine costs) versus income (meaning rental income) as a deduction against your personal tax (assuming the property was bought in your personal names).
You need to take care to get it right though. I mean, for example, that if you've bought the property as Joint Tenants on the offer, then only 50% of the deductions are yours, and 50% go to swmbo. You should talk to your accountant as it may differ slightly from state to state, but I'd think these basic details would be the same.
Cheers
