When looking at investments, we always look to increase tax deductible debt and reduce non-deductible debt.
As well as ensuring we get you a favourable interest rate, we make sure you consider and understand different loan features such as:
- Principal & Interest loans vs Interest Only
- Offset accounts vs Redraw facilities
- Fixing the interest rate to lock in repayments
- Cashflow and paying any shortfall expenses
- Using equity to assist with financing or cash withdrawals
A strategy we look at is using an existing property as security and borrowing 100% of the funds required to purchase an investment property. This will increase the tax deductions on the investment, while you can maintain cash flow to assist with your investment portfolio.
We consider your investment strategy, which will always be unique. Depending on your situation, it may be more beneficial to repay both the principal and interest of a loan to decrease your overall debt. Or alternatively, to improve cash flows you may prefer to pay the interest only. There are complexities to each situation which need to be considered.
TF Partners are advisors as well as brokers, so we go a step further to make sure you can take advantage of all available tax deductions for investment properties. Most residential investment properties are negatively geared which provides massive tax benefits, by reducing your net taxable income. Tax benefits we can assist you with include:
- Obtaining a property depreciation schedule to claim depreciation deductions
- Using the estimate annual negative gearing on your property investment to vary the PAYG Withholding tax your employer currently withholds, which could result in your net employee payments becoming higher
- Paying interest in advance to bring forward the tax deduction
Why choose TF Partners?
TF Partners is constantly evolving and developing alongside our clients, to provide a holistic range of services including Accounting, Business Advisory, Wealth Management and Finance. With our depth of expertise, we provide our breadth of services to a diverse range of clients across an array of industry sectors.