3 Ways Twitter Destroyed My Property valuation Without Me Noticing
You could then make decisions yourself, to say ‘well its getting closer and closer to what I’m not comfortable with, maybe I should be looking at fixed’. Ryan And that’s why a fixed rate can give you more borrowing capacity because the buffer that most lenders will put on a **variable right** won’t necessarily.
Be added to a fixed rate.Brad There are several lenders that look at it that way. It’s not the most common practice.Ryan, So you really need to know which lenders do this, so again go and see your mortgage broker, someone like Brad or whoever you choose to go to.
So what are some other ways, that’sone I didn’t know of and I was excited to find out about, what else is there?Brad, I think the majority has already been said. That’s most of the things covered for purchasing your own home, but for investors, there’s several more. Obviously, the investors are aware of the benefits of the negative gearing. Obviously, I’d rather have a positively geared property because it’s making me money.
Ryan Rather makes money and pays the tax than losing money and save tax. Brad Yeah, but if your portfolio or investment property is negatively geared or you are purchasing a property that will become negatively geared, not all lenders give you the benefit of the negative gearing in the serviceability that loan application. But yes, obviously you’re making a loss. It’s like a business, you make a loss,
There’s obviously an offset of tax against that.Ryan But that offset of tax some – lenders will take that offset into account where some lenders won’t take that offset into account. So by going with a lender who will take that offset into account, you may be able to increase your borrowing capacity.
Brad But always talk to your financial advisor property valuation methods before going into negative gearing.Ryan Yes, always speak to your tax accountant or financial advisor.Brad Yeah, it’s got to be said because we’re not licensed to provide advice on negative gearing.