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Mrs&MrW

Tax deduction after 1 year of buying property??

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Hi all,

 

so I read on a immigration advice website that they recommend you to buy a property as soon as you move to Oz (even before if possible) instead of renting. They say that even if this house is not a permanent one, it is a good investiment as after one year of you having bought a property you receive a sort of tax deduction, and you can use this property as an income and rent it out when you decide to buy something more permanent.

 

Is this acurate? What is this tax deduction and how does this works?

 

Many thanks

Mrs W :-)

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Not something I've heard of before, @Andrew Williams may be able to shed some light on this. The only things I'm aware of are things like the First Home Owners Grant if you're buying a new property to live in or if you were going to rent the property out and it's negatively geared, then you've the benefit of offsetting the losses against other taxable personal income.

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Not something I've heard of before, @Andrew Williams may be able to shed some light on this. The only things I'm aware of are things like the First Home Owners Grant if you're buying a new property to live in or if you were going to rent the property out and it's negatively geared, then you've the benefit of offsetting the losses against other taxable personal income.

 

Thanks for the reply... maybe they were refering to this second option, as they suggest you rent out instead of selling the house you first bought?

 

I am aware of first home owners grant, which is a wellcome help!

 

Good tip on @Andrew_Williams... I'll see if he can help :-)

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Sorry just seen this thread, first time I have logged in for a while (tut tut, lol).

 

I am not sure of the tax deduction they are referring to, certainly not when you are living in it, as already mentioned above by Cerberus1 if it becomes an investment property later down the line then there would be possible tax deductions through negative gearing and maybe depreciation.

 

As with everything though investments should be made after thorough investigation and research and whilst tax deductions may be of benefit should not be the driver of an investment in the first instance.

 

KR

 

Andy

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Sorry just seen this thread, first time I have logged in for a while (tut tut, lol).

 

I am not sure of the tax deduction they are referring to, certainly not when you are living in it, as already mentioned above by Cerberus1 if it becomes an investment property later down the line then there would be possible tax deductions through negative gearing and maybe depreciation.

 

As with everything though investments should be made after thorough investigation and research and whilst tax deductions may be of benefit should not be the driver of an investment in the first instance.

 

KR

 

Andy

 

Dear Andy

 

thanks for your reply... we are still getting our heads around the system and thinking on our options.

 

We know you are always a good help when we need.

 

Thanks again

 

MsW

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