Investment Home Loans – What You Need To Know About Savings, Returns And Deductions | BlackBox Finance

Ever wondered why everyone’s so focused on purchasing an investment property? We’re often asked by clients what benefits an investment property/loan will return them. Our first response of course is to ensure you have a solid taxation advisor as part of your team! A good accountant will prove their value and work with you to create a road map for the future. Here are some additional points to consider:

Investment Properties

An investment property is viewed differently to your own home/loan. The cost of a loan taken on an investment property can somewhat, be used to offset your own personal taxation. Usually, the interest charged, maintenance and property management costs or a portion of it can be claimed back and used to offset how much tax you personally pay. This may not always be the case, SO DO YOUR HOMEWORK IN ADVANCE, and listen to your professional advisory team.

Split Loans

Some loans are considered split or linked loans. Each account must be verified, and its use confirmed e.g. personal use or investment. Your accountant will also love you, because separating personal from investment debt makes their job easier and may save you some serious $$$ on their bill!

Investment Home Loans For The Self-Employed

Different rules apply to self-employed people, as opposed PAYG (Employees). Banks have several products that specifically cater to the self-employed market, and factor in that income is not as consistent. These loan products are typically at higher rates, however, may be suitable considering the tax deductibility of the higher costs. As an example, you may be in a high paying job, subject to a very high taxation bracket, in which case, higher investment costs create larger “losses” used to reduce your tax bracket.

It might seem complicated, but making your debt and tax work for you on an investment loan can be quite beneficial. Do your research and work with the right team and you won’t go wrong. 

For guidance, contact Ben at Blackbox finance today by submitting an enquiry in the contact us section below, calling 1300 70 12 17, or by sending a quick email to [email protected]. Blackbox Finance your trusted mortgage broker servicing Palm Beach and other areas in Southern Gold Coast. 


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