Interest rates up again, no surprise really – Tax Variation
Rising Interest rates and Tax Variation
The fact that interest rates were put up again this week didn’t surprise too many people given the fact that there was not an interest rate rise in February. Property investors need to be prepared for this as there will probably be a few more this year. View our stategies for increasing rents.
There are glimmers of economic improvements in most countries now and slowly but surely we will see interest rates climb again throughout the globe.
So what does this mean for you?
As a property investor I am sure you have re-evaluated your current situation regarding your loans. Is now the time to refinance? If it is time to refinance you will propbably find that your exit costs are not as high as they would have been 18 months ago. Do check the costs of changing your mortgage before jumping in. I am sure you will anyway, but just a word of caution as sometimes we do these things in a hurry due to other concerns and involvements in our lives.
Just a reminder about Tax Variation
If you are in a situation where you find it difficult to meet your monthly repayments don’t forget that you can apply for a Tax Variation from the ATO and have your tax refund allowed to you throughout the year.
I know an investor who is in this situation due to the fact that land he bought some time back now has to built on. Your situation could be similar or be due to purchasing another property for your property portfolio or it could be because of your job situation. The savings can be quite substantial and ease the pain of meeting committments during the tougher financial times.
Filed Under: Investment Strategies • Tax Tips
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