I'm new to this and doing some research before seeking professional advice and getting into the market. Would anyone be so kind as to advise me on the below scenario so that I am able to understand property investment in a better way;
* No previous purchase of property, never owned any property.
* Considering buying an investment property in a different state and rent it out for tax deduction.
1. Interest only payment for 5 years, is this the common way to do it?
2. How much should the deposit be? As much as possible to reduce repayment and mortgage insurance or as little as possible to maximize interest for tax
deduction?
3. Is mortgage insurance tax deductible? If yes deposit should be as little as possible?
4. Tax deduction will be interest on mortgage per year deducted by total rent income per year?
5. Is interest still tax deductible in period where there is no renter thus no rental income?
6. What to do after 5 years is up? Sell it? Refinance? How do people normal refinance? Ongoing refinance at 5 years over and over again just to get the interest as
a tax deduction?
7. Can you move into an investment house and still use i for tax deduction with no rental income?
8. What are other things to beware of?
Thanks.