How would you like to avoid using cash to pay for your investment property? In today’s episode, accountant extraordinaire Andy Teece answers the common questions of property buyers about the different borrowing facilities and their implications. Andy can explain difficult accounting topics in a way that is easy to understand. This can be a complex conversation especially to new investors, but I assure you, listening to this can help you have less bad outcomes. At the end of this conversation, my simple advice to you would be: go to an expert.
In this episode:
- Andy tells us how he got interested in properties
- The difference between Offset Facility and Redraw Facility
- Why the purpose of the borrowing impacts the type of facility to avail
- The rules involving capital gains tax when you decide to move out of your principal residence
- The mistake people make before entering into a transaction
- Can we claim buyer’s agent’s fees?
- What you need to know about Land Tax as an investor
- The drawback when structuring through Discretionary Trust
- When do other vehicles or buying structures become relevant
- The issues buyers encounter when they buy interstate
- The frustrations investors have stemming from borrowing capacity or equity
- Why investors need to go through tax planning and strategy sessions before purchasing properties
- The unintended consequence of buying a property to minimize tax
- Why it’s beneficial to establish a long-term relationship with accounting experts
- Tips for new players in building their portfolio
- Is your home a risky investment?
