It is hard to believe that we are now half through 2015 (did you know it is only 183 days until Christmas is upon us once again).  As June 30 closes in, we thought now is a prudent time to look at a few common ‘legends’ that Property Investors are faced with at this time of year and sort the truths from the myths.

1. Refinancing a homeloan means you can put yourself in a better position, negative gearing wise come tax time.

Myth: This is not necessarily so.  Bundling in credit card debt or a car loan into a homeloan can be a great move financially but there must be a clear link between the initial mortgage to acquire the property and the refinanced amount to claim all the tax benefits you would like.  Before doing anything, check with your accountant to ensure you make the right decisions for your circumstances and do not jeopardise your situation and benefits.

2. The market will slow down after June 30.

Myth:  We often find the opposite of this is true.  As the new financial year begins come July we generally find an influx of buyers and vendors into the market when it comes to the Brisbane CBD and it is a very exciting time for real estate movements!  With new purchasers entering the market it is a fantastic time of year to consider selling a property.

3. Prepaying your interest can be a great forward planning tool

Truth: If you are expecting to have a lower income next year (perhaps changing careers or factors such as maternity leave) it can be a good option to consider!  You could make life easier for your family come the new financial year and also reduce your higher income come tax time.  As with any financial discussion, it is best to speak with your financial advisor when considering this possibility.

4. Any amount you spend on your investment property is a tax deduction.

Myth: This is not as clear cut as it may seem.  If you are carrying out ‘repairs’ to a rental property then yes it is likely you may be eligble for a tax deduction, but if the repairs are purely to ‘improve’ the property this may not be the case and you should seek the advice of a taxation specialist before carrying out the work to find out where you will stand.

The moral of the story is, speak to an expert and do your research to ensure you make the right decisions for you. 

For more information about what is happening in the Brisbane Real Estate market, email Hannah today by clicking here.

**Please note this article and all information on the HS Brisbane Property website does not constitute as advice.  While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. HS Brisbane Property will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.