Please note that this content has been designed for informational purposes only and does not constitute individual financial advice.
If you own a rental property, you might be being hit by a double whammy of increasing costs. Not only are they subject to rising interest rates (just like the rest of us) they’re also slowly losing the ability to deduct interest costs from that investment property’s income – unless you purchased a new build in the last two years or so.
As Hannah McQueen explained to Lloyd on Lloyd Burr Live, one of the biggest downsides of the new tax deductibility rules is the additional cost you may now incur for holding the property – which you’ll likely have to pay out of pocket.
Whether you keep the property or sell it (and replace it with a new one) depends on a few factors.
The biggest of which is whether the rental property they currently own is the right property to continue to own for the next few years, or whether it’s time to replace it with a shiny new one.
Hannah McQueen explains what you need to consider in relation to keeping the property or replacing it with Lloyd Burr on Lloyd Burr Live below.
To better understand the full impact of the tax deductibility rules on your investment property, and the pros and cons of keeping or selling, its worth chatting to a financial adviser or your accountant.
Disclaimer: This blog post is for informational purposes only and does not constitute individual financial advice. If you’re interested in receiving personalised financial advice, you can book in a consultation with an enable.me coach. Costs apply.
