British Expats - Tax and PR

British Expats (https://britishexpats.com/forum/)

- Australia (https://britishexpats.com/forum/australia-54/)

- - Tax and PR (https://britishexpats.com/forum/australia-54/tax-pr-779754/)

Quote:

Originally Posted by paddyo (Post 10426740)

oh TE....have hijacked your thread here a bit...apologies!

No problem Paddyo. Tax avoidance is a serious issue! :thumbsup:

Quote:

Originally Posted by paddyo (Post 10426739)

If I switch to a Interest Only mortgage then at the end of the term I can sell the house but still owe 100000 of the repayment loan?

Yes you are correct, but you will be paying interest ONLY on the 100,000 and ALL the interest payments will be tax deductible. Also in 10 years time the 100,000 you still owe won't be worth as much as 100,000 in today's money.
Basically it gives you more money NOW.
Also if you pay off the mortgage entirely you will have NO tax deductions for interest payments and so you will pay more tax on the income from the house.

cheers for your help Kiwipaul....I'm not the best at this stuff and will take some professional guidance on the best way to manage this for both mortgage and tax purposes. I am happy to pay my due taxes, I just want to make sure I am not paying any unduly.