Incorrectly converting home to investment property could cost you extra $7k a year

When people upgrade home and keep their old home as an investment property, they can generally borrow the majority of the purchase cost if they have sufficient equity in their existing property portfolio. However, the interest on the new loan is not tax deductible against rental income from the old home as it fails the purpose of the loan test. As a result, the new investment property (i.e. the old home) generates big taxable profits.
In this week’s blog, we use a case study to discuss how a right loan structure could help you save ten thousands of dollars in tax each year when upgrading home.
Learn more:

Video Timeline
1. When Luke and Jane upgrade home and keep their old home as an investment property, they could lose $7,789. -- 00:57
2. How could Luke and Jane save $13,530 annually by using right structure? -- 02:25

Other Videos You Might Like:

When clients say: “I’ll contact you when I’m ready.” Why you shouldn’t wait until it’s too late.


How to improve loan structure to save on interest, repay your debt faster, and become mortgage free?


What should you do when your interest only mortgage ends within the next two years?


All you need to know about New Zealand’s ring fencing of residential rental losses bill


Why should you consider refinancing your mortgage?


You can still follow me here:
As a subscriber of this channel, you are going to be the first to hear about the latest financial tips and the latest bank special offers. So subscribe to my channel right now.


GET MORE PROSPERITY FINANCE!

As a financial advisor based in New Zealand (Auckland), we can help you to achieve your financial goals. No matter you are first home buyer, property investor, or looking for buying a commercial property, or if you are a construction builder or developer.

Our key value:
1. We can ensure your assets are under protection by reviewing your loan structure.
2. We offer flexibility to you, which means you will never get stucked into the situation like when you need money while bank cannot offer you the money.
3. We help you save interest and save tax by developing a personalized repayment plan.

TONS MORE VIDEO NEWS & TIPS

TESTIMONIALS


LET’S CONNECT!
Prosperity Finance:
Facebook:
LinkedIn:
Instagram:
WeChat: XY_PAL
WeChat Official Subscription: xiaoyu频道

TALK TO US NOW!
Phone: 09 930 8999
Email: support@profin.co.nz

Upgrade home,upgrade house,upgrade home to investment property,property investment tips nz,property investment nz,can you turn your home into an investment property,turn home into investment property,turn current home into investment property,turn family home into investment property,converting personal home to rental property,steps to turn your house into a rental property,changing from owner occupied to rental property,tax implications turning home into rental,