{"id":1664,"date":"2022-01-31T05:31:51","date_gmt":"2022-01-31T05:31:51","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/why-the-wrong-structure-could-cost-you-dearly\/"},"modified":"2022-01-31T05:31:51","modified_gmt":"2022-01-31T05:31:51","slug":"why-the-wrong-structure-could-cost-you-dearly","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/why-the-wrong-structure-could-cost-you-dearly\/","title":{"rendered":"Why the wrong structure could cost you dearly"},"content":{"rendered":"

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Please use the menu below to navigate to any article section:<\/p>\n<\/div>\n

It\u2019s so important to set up the right structure for your property investments at the beginning of the deal.<\/strong><\/p>\n

If you don\u2019t, you could needlessly cost yourself thousands (or even hundreds of thousands) of dollars in lost profits.<\/p>\n

My friend is in the very fortunate position of owning his property outright.<\/p>\n

The problem?<\/span><\/h2>\n

It\u2019s an investment property.<\/p>\n

The bigger problem? \"Home<\/p>\n

He still has significant debt over his own home mortgage.<\/p>\n

He asked me for advice because he wants to access some of his property equity to finance a substantial renovation of his home.<\/p>\n

I was sorry to tell him the bad news \u2013 that he\u2019s structured his loans the absolute worst possible way and it\u2019s costing him a small fortune \u2013 but I was also inspired to write this article.<\/p>\n

In a nutshell, he made an assumption that many property owners make.<\/p>\n

He thought if he borrowed money against his investment property as security, that would help make the debt tax-deductible.<\/p>\n

This is not the case, because the ATO looks at the intention of the loan, not the security it\u2019s attached to.<\/p>\n

In simple terms:<\/span><\/h2>\n