Coops13 Posted October 28, 2013 Share Posted October 28, 2013 Morning all.... This is a call to arms....! A chance for you to add your top couple of tips and tricks to making your money/investments work for you. I'm hoping that a few of you may take the time to add a couple of tips or ideas that have saved you money in some way, shape or form. I'm initially thinking of income tax, claiming on UK and/or Aust investment property or anything else along these lines. I'm finally getting my backside into gear now and look at making my current investments work for me. To date I have not had the time nor the inclination to shake things up and get the most out of them but I'm now in a situation where I am property rich (supposedly) but very much cash poor (definitely). I have a few investment properties in the UK and one here in Australia and the first thing I looking at doing is releasing as much equity out of the investment properties and placing these funds in the offset account against my personal residence to reduce the mortgage payments. Reason being I can claim the interest payments on the investment properties and also claim any losses against my personal income and lower my normal mortgage significantly increasing my cashflow. Please add your tips and tricks and let's share our knowledge (albeit it limited on my side) and see if we can all learn something that may help someone else make a change. Looking forward to them... Coops13 :biggrin::biggrin::biggrin::biggrin: Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted October 28, 2013 Share Posted October 28, 2013 Hi Coops Just a couple of things. Firstly, If the borrowings are not for investment purposes then you will not be able to claim a tax deduction on the interest payments. Secondly, you may be taking on an extra risk with this strategy as currency risk may then come into play if you intend to transfer dollars back in the future to reduce the sterling liability. Kind regards Andy Quote Link to comment Share on other sites More sharing options...
Coops13 Posted October 28, 2013 Author Share Posted October 28, 2013 Hi Andy Thanks for the heads up. A little confused about how the reasons for the releasing equity comes into play. I have released equity from a property previously and it was never and issue and I just noted the increase in mortgage payment on the investment property on my tax as per normal...? With regards to the currency risk, I'll not mortgage up to the hilt in the UK so should be OK with regards to covering all costs at that end. And, painful as it it to exchange gbp to aud at the current exchange rate (I'm still living in 2:1 land! ;-) ) I still feel that at least my money will be working for me now as oppossed to sitting locked up in properties in the UK. Certainly no plans of going back to the UK. I'm an Adelaide boy originally and see that's your patch! Always interested on getting snippets from an expert....thanks again....much appreciated. Cheers Coops13 Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted October 30, 2013 Share Posted October 30, 2013 (edited) Sorry for delay Coops13. So your from Adelaide then, we are in Happy Valley, where were you from when you lived here? You should not claim tax deductions for interest payments if the purpose of the loan is not investment related. Using the borrowed funds to reduce or offset your personal home loan means that the borrowing is not investment related. Regards Andy Edited October 30, 2013 by Andrew from Vista Financial Quote Link to comment Share on other sites More sharing options...
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