| Most investors in Australia have a home loan. | | | | home loan and a negatively geared investment |
| Most investors use the equity in their home | | | | property then there is a much more tax |
| property to help them on the road to wealth with | | | | effective way to structure your investment loan. |
| their first investment property or share acquisition. | | | | Until recently there has been considerable |
| In the past most investment loans were standard | | | | confusion amongst property investor tax payers |
| long term facilities with an initial interest only | | | | about the deductibility of capitalised interest on an |
| period of say 5 -10 years after which they | | | | investment loan. The Australian Taxation Office |
| converted to principal and interest. Most | | | | has been promising clarification on this for some |
| properties are negatively geared with investors | | | | time. There have been 2 recent developments |
| using their personal income to subsidise the | | | | that at least seem to be giving some guidance as |
| shortfall between interest on their investment loan | | | | to the ATOâs direction on the |
| as well as other costs associated with the | | | | deductibility of capitalised or compound interest on |
| property and their investment income. | | | | an investment loan or a investment line of credit. |
| If you are one of those investors with both a | | | | |