Browse Forums Home Finance 1 Aug 07, 2011 1:40 pm We own this home we are in and we are building another home which we will be in debit for about $200,000,if this one doesnt sell we will need too rent this one out?? And move into the new one.. What do we need too do too rent this and get the loan on this one so we can get benefits for renting... Do we just put it in my name as i dont work,or do we put it in my husbands name that does work??? So not sure????? loan on a rental??? 2Aug 07, 2011 9:12 pm Just remember you can't claim any loan expenses for the new home build on your rental. Ie if you rent out the new house the loan used to build it will be tax deductible. If you own your existing home (no debt) then there are no loan expenses you can claim. Putting the loan in one name or two would be up to your lender and advice from your accountant. Some things are worth waiting for. Re: loan on a rental??? 3Aug 08, 2011 5:48 pm It sounds like you already own both properties? but you want to know whos name will go on the mortgage?? - if that's the case; it's probably a bit to late....the tax advantage only applies to the person(s) who are on the title deed; it doesn't really matter who's on the mortgage. Also from the sounds of things a bridging loan MAY be beneficial ....but need a bit more details to know what sort of trouble your having etc.. Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: loan on a rental??? 4Aug 08, 2011 7:51 pm we will only owe $200,000 but thinking of renting this one we are in atm... we will own the one we are having built atm.... we are trying too sell this atm but the way it is, its going too be hard too sell and we arnt giving it away....no houses seem too be selling in these hard times... Re: loan on a rental??? 6Aug 08, 2011 9:47 pm OK She said she will have a loan on the new home which they will move in to. If you do not sell the original home but rent it you will have no deductions for interest (as you do not have a loan on it). You can claim rates etc though. If you rent out the new home you can claim interest on the $200K. It does not matter who's name the loan is in. What matters is in who's name the contract is in. That's what counts at tax time. If you own half you are responsible for half the debts (and profits). Re: loan on a rental??? 7Aug 08, 2011 10:46 pm IM still confused, i think your leaving out some of the more important details, but instead giving us details we do not require.... So you have a outstanding loan of $200k correct? and your thinking of selling this existing home --- and buying something else to build on ( land purchase) OR are you wanting to build on your current existing home?? ie subdivision type/granny flat type. Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: loan on a rental??? 8Aug 09, 2011 7:53 am [quote="shape"]IM still confused, i think your leaving out some of the more important details, but instead giving us details we do not require.... So you have a outstanding loan of $200k correct? NO WE OWN EVERYTHING ATM!!!! and your thinking of selling this existing home -- ITS ON THE MARKET BUT IF IT DOESNT SELL WE WILL RENT IT OUT<WHICH WILL MAKE US HAVE TOO GET A LOAN FOR $200,000- and buying something else to build on ( land purchase) WE HAVE THE LAND AND ATM WE ARE BUILDING ON IT.. .OR are you wanting to build on your current existing home?? ie subdivision type/granny flat type. IF WE DONT SELL WE WILL RENT THE OLD HOUSE WE ARE IN AND WILL OWE $200,000..... and you think you guys are confused,ive no idea whats going on... loan on a rental??? 9Aug 09, 2011 8:32 am If you rent out the new one you can claim the mortgage expenses and negatively gear it. If you rent out the old one you will have to positively gear it and rely on capital gains. Go see an accountant they will work out whose name to put it in. I doubt it will matter as if you rent out the old one there won't be many tax deductions. You can't put a mortgage on the one already paid off to use for a tax advantage - that is tax fr@ud. Re: loan on a rental??? 10Aug 09, 2011 9:55 am Rups is correct. Existing home - no physical loan for this property = no negative gearing aspect. Your rental income will be offset against things like rates / upkeep etc but basically your income will become positively geared (ie more income then outgo) New home - loan approx $200k. This is your new owner occ property so you can not obtain any financial benefit against the loan. You pay the loan and the interest and the ATO will not discount your income. Does that make sense? Some things are worth waiting for. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19378 DIY, Home Maintenance & Repair Follow up question - any ideas on how to set up a portable air conditioner through this kind of window? 1 6491 |