alipally

Hello,

Just a bit of background needed if that's OK. It's all theoretical at the moment, but I'd appreciate your input.

If I buy a property outright with no mortgage, do I still get the first time buyers allowance thingy?

If I then buy another property with a decent deposit but need a mortgage, what am I entitled to in the way of tax perks for having a second property?

BTW these properties will be in different States, will that make a difference?

Thanks in advance for your input.

smoggieswilltravel

Hi

I beleive that the first home buyers grant is exactly that and after you have purchased your first home any where is Oz then that's it, the 2nd purchase is a 2nd purchase and therefore you would not be able to apply for the grant. It also has to be your main residence and you have to remain in that residence for 12 mths or pay back a pro rata amount is you sell. Hope that helps.

alipally

Thanks for that, I knew that they'd pay it for the first property. I didn't think they would for a second.

Does anyone know anything about the Tax relief that you can get on a second property/mortgage in Australia?

All replies gratefully received

Thanks

Siren & Brian

With regards to tax breaks on your investment property will depends on if its negatively geared or not.

IF the mortgage is $40,000 a year and the rent etc is only $20,000 a year there is a $20,000 shortfall which you have to pay each year. That $20,000 you can claim as a deduction on your taxable income.

katsmajic

Ali, post the question on PIA theres alot on there with 2 properties.

Our friend tried to explain it too me once but we'd both had way too much wine for me to have understood.

longreach

I assume you are talking about investment properties.

As already explained. if you are negatively geared (as you should be if done correctly) you can claim tax relief on the difference.

Also, you can claim tax relief on the depreciation of your fixtures & fittings, and any other associated costs incurred.