The interest on your home loan IS deductable, you CAN claim it, you don't need to refinance to an investment loan. But, only that amount is deductable - so if you have redraw and take that out, or top up the loan to get a car or something, that extra amount ISN'T. Rates, maintainence, property manager fees are all deductable but large upgrades that are well over and above repairs (new kitchen etc) aren't, you have to depreciate those over several years.
I tried to sell my last house, couldn't, now it is rented out.
Going to have timing issues selling our current house, so it'll probably get rented out too. You can rent a house out here within a week, selling takes months.
There's always a catch though. You have tenants. And tenants are humans, with all the foibles humans have, so if you get unlucky you'll have issues and probably not earn as much from the house as you thought you were going to, or they'll not look after the house as well as you would. My tenants have indoor dogs and cats ... OMG ... so much hair!
Reply With Quote
Bookmarks