After a lot of evenings reading and learning from the forum, some questions for my next steps...
Current situation: living in own mortgaged home (not in trust etc), land value 450k, total GV 840k. I am in the 39% tax bracket, my wife works part time and is in the bottom bracket. All income through salary/wages.
Our house is in a popular summer holiday destination, and a large (3Ha) block.
The plan is to build holiday accommodation on our property, initially 1 house but over time maybe 1 or 2 more (i understand from council we can have up to 6 such dwellings on the property if they do not have full kitchens, but obviously would get that confirmed) . There is no intention to subdivide the property. Cost of each dwelling would likely be in the vicinity of 120-150k.
Now to the questions...
what would be the best ownership structure for us?
for costs like rates ($3500) how much would be attributed to the rental as opposed to our personal house? or driveway repairs etc.
presumably the office in our house would be an expense of the rental property?
I think that i can follow the depreciation costs, which should be fairly simple as it would be a brand new house and no land cost. And all that extra interest cost...
and finally (for my first post anyway) is there a loan structure that would work better for this situation given that 90% of rental income would likely be Dec-Feb?
Thanks in advance!
dr
ps yes I will see an accountant, but I like to have a bit of knowledge first.
Current situation: living in own mortgaged home (not in trust etc), land value 450k, total GV 840k. I am in the 39% tax bracket, my wife works part time and is in the bottom bracket. All income through salary/wages.
Our house is in a popular summer holiday destination, and a large (3Ha) block.
The plan is to build holiday accommodation on our property, initially 1 house but over time maybe 1 or 2 more (i understand from council we can have up to 6 such dwellings on the property if they do not have full kitchens, but obviously would get that confirmed) . There is no intention to subdivide the property. Cost of each dwelling would likely be in the vicinity of 120-150k.
Now to the questions...
what would be the best ownership structure for us?
for costs like rates ($3500) how much would be attributed to the rental as opposed to our personal house? or driveway repairs etc.
presumably the office in our house would be an expense of the rental property?
I think that i can follow the depreciation costs, which should be fairly simple as it would be a brand new house and no land cost. And all that extra interest cost...
and finally (for my first post anyway) is there a loan structure that would work better for this situation given that 90% of rental income would likely be Dec-Feb?
Thanks in advance!
dr
ps yes I will see an accountant, but I like to have a bit of knowledge first.
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