The answer to this question is, "It depends on the scenario". If you are planning to buy a rental property that is cash flow negative, you need to look at the future capital growth potential and the land size of the property, i.e. is this a subdividable section or is there value left in the property which you can use to refinance later?
The current tax law allows that any losses generated against cash flow negative rental properties can be claimed against your personal income if structured correctly. This means that if your average tax rate is 33%, for every dollar of loss, you will get 33 cents back.
To whom it may concern: The Corporate Trustee team at Gilligan Rowe and Associates have been our Professional Trustee for our family trust and trading trust since May 2005. From the initial advice during the designing and creation of our trust structures through to the day to day operation of the entities, the support and guidance we have had from the Corporate Trustee team has been second to none. As a business owner and operator, I need to have reliable, efficient, proactive and knowledgeable people as part of our business team and Gilligan Rowe and Associates Trustee services tick the boxes in all of these criteria. I have no hesitation in commending and recommending Gilligan Rowe and Associates Trustee Services team to anyone who requires professional and competent guidance in the safe operation of their trust and in turn secure protection of their assets. - RNT
Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.
We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.
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