Changes in Investor lending criteria make these tips more important than ever

With many Banks changing what they offer to investors  such as ANZ Banking Group removing the cash-flow benefit of negative gearing and the Commonwealth Bank of Australia and Westpac reducing the proportion of rental income they will consider when assessing mortgage serviceability, these tips from

Amanda Gascoigne, Principal Accountant at Gascoigne Consulting are more relevant than ever:
  • ask your accountant what is the the best structure to buy the property in? Traditionally people tend to buy a property in their own names however there are so many other options these days such as trusts and self managed superannuation funds. These structures may offer better tax and/or asset protection benefits
  • ask your accountant if it is worthwhile to obtain a quantity surveyors report? The ATO acknowledge that there is certain wear and tear on an investment property and they allow taxpayers to make a claim for depreciation and building write-off. If your property is eligible, it is a great way to increase the property’s annual tax deductions without having to actually spend any money
  • ask your accountant whether it would be appropriate to apply to the ATO for a PAYG withholding variation application. Basically instead of getting your tax refund at the end of the year when you lodge your tax return, you can get it progressively during the year. The ATO calculate the likely amount of your refund and then advise your employer to deduct less tax than normal, which will increase your weekly, fortnightly or monthly pay. This may assist with your cashflow

Read more: http://www.afr.com/real-estate/apra-bank-loan-changes-put-the-brakes-on-property-investors-20150720-gighhu#ixzz3ig8dijMr
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