Property Investor Tax, Lending & Structure

It can. Deductibility generally follows the purpose the borrowed money is used for, not the property the loan is secured against — so how a loan is split, drawn and repaid can affect which interest is deductible. The rules are specific and depend on your facts. We scope the tax and lending sides together, but information here is general only and personal tax advice is given inside an engagement.

Lenders typically look at your property’s current value and your loan balance, then lend against a portion of the value (commonly up to 80% without lenders mortgage insurance), less what you already owe. The usable figure depends on the lender’s valuation and policy and on your serviceability. Eligibility, lender criteria, fees and charges apply, and any figure is subject to the lender’s assessment.

Yes. Accounting and credit assistance are separate regulated activities one practitioner can be authorised for. At Eternity Group, Rohan Manokaran is a Chartered Accountant and registered Tax Agent (TPB 25523469) and a Credit Representative (565110) under Australian Credit Licence 561324 held by Loans Only Pty Ltd, so your rental tax position and your investment lending are scoped by the same person. It is a coordination benefit, not a guarantee of any outcome.

Keep the purchase documents permanently — contract, settlement statement and buying costs — because they establish the CGT cost base when the property is eventually sold. Year to year, keep loan statements that can be matched to the property, agent statements, invoices that distinguish repairs from capital improvements, insurance and rates notices, and a current depreciation report if you have one. Records of capital improvements matter long after the year they are paid, since they adjust the cost base. This is general information; what is deductible in your return depends on your circumstances.

Generally, refinancing the same balance for the same purpose preserves the character of the debt — the new loan stands in the shoes of the old one. Complexity arises when extra funds are drawn at the same time: deductibility of that new borrowing follows what the money is actually used for, not the property securing it, so the split and the paper trail need to be set up deliberately. This is general information only; we review the tax side of a refinance before it settles, inside an engagement.

Both, in one conversation. The decisions that matter most at a first purchase sit on the boundary: whose name goes on the contract affects each owner’s tax position and future borrowing, and how the deposit is funded affects deductibility if it comes from equity in your home. Neither is answered well by one side alone, and both are far easier to settle before a contract is signed than after.

Selling releases the security, so the loan against that property is usually repaid at settlement — but where properties are cross-collateralised, or sale proceeds are needed elsewhere, the lender may revalue and reassess the remaining loans before releasing the title. On the tax side, the sale is a CGT event, and the contract date rather than settlement generally fixes which income year the gain falls in. We look at both before a property is listed, inside an engagement.