Purchasing a Negatively-Geared Investment Property in the Name of the Highest Income Earner
At Mortgage House, we offer a variety of solutions to help you minimise your mortgage repayments, allowing you to pay off your home loan sooner. One of our most popular solutions is for dual-income households to purchase a negatively-geared investment property in the name of the highest income earner.
What is a Negatively-Geared Property?
A negatively-geared investment property is when the money you make from rental income is less than the routine expenses of owning the property. These expenses include both regular upkeep and maintenance and the monthly loan repayments. You may be able to recoup these losses if you can sell the property for a higher price later on, creating capital gains. Negatively-geared properties reduce your taxable income, lowering the amount of yearly tax you pay.
How Does Purchasing One Help Minimise Your Mortgage?
Purchasing a negatively-geared property reduces your taxable income, allowing you to put more money towards your mortgage repayments. These extra repayments can help you pay off your mortgage sooner. In addition, if you can sell your property at a profit in a few years, you can put the profit towards your mortgage repayments. If a couple is buying a negatively-geared property, purchasing it in the name of the borrower with a higher income allows you to receive a lower interest rate. A lower interest rate allows you to have more profit when selling the property, allowing you to put more money towards your mortgage repayments.
If you would like to learn more about using a negatively-geared property to minimise your mortgage, the lending specialists at Mortgage House can help.