call us now on (08) 9289 7777
June 2016

Prepaying Interest – Why would you?

time and money

Are you looking for tax deductions for this financial year? You may be considering prepaying interest on your investment loan. Investors often use this strategy, with the sole purpose of maximising tax deductions on investment properties. However, you may wonder if giving all that money to the bank the right thing to do… The upside: Tax strategy For the financial year (FY) in which you prepay interest, you can have a double deduction of the interest paid on your investment loan. This is because you would have been making the monthly interest repayments throughout the year. You then make another …

Continue Reading

Low Interest Rates – The Winners and the Losers

Everyone knows that interest rates in Australia are lower than they have ever been, but no one knows with certainty what the future holds for rates. Even the most seasoned commentators were surprised with the latest drop after the Reserve Bank’s May meeting. Most predictions are that they will remain at the low end for some time to come, so while borrowers love low rates and savers curse them, what can be done to make the most of the situation? The Winners Major winners of declining interest rates are households with mortgages that were taken out at a higher rate. …

Continue Reading