Prime Residence Owned Outright - Best Strategy
- Thread starter jhoward
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Hi there,
First and foremost, your friend should make sure that they speak to a qualified broker before making any decisions. Depending on steps they take during this initial stage, with respect to the advice they get regarding mortgage products, long term mortgage and tax strategies, could be extremely crucial for their long term success.
Be sure they do thie rdue diligence.
First and foremost, your friend should make sure that they speak to a qualified broker before making any decisions. Depending on steps they take during this initial stage, with respect to the advice they get regarding mortgage products, long term mortgage and tax strategies, could be extremely crucial for their long term success.
Be sure they do thie rdue diligence.
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- Oct 26, 2007
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Ah, from an interest deductibility perspective, he should be careful regarding the way he plans on financing and purchasing the new property.
Since all the equity is in the house that will be rented, he will most likely obtain a mortgage on the second house which will be his principal residence. As such, the interest is not deductible.
He could structure his affairs to ensure the interest is deductible, but he would need to talk with a qualified tax practitioner. There are other tax matters to consider as well.
Todd Stokowski, CA
Since all the equity is in the house that will be rented, he will most likely obtain a mortgage on the second house which will be his principal residence. As such, the interest is not deductible.
He could structure his affairs to ensure the interest is deductible, but he would need to talk with a qualified tax practitioner. There are other tax matters to consider as well.
Todd Stokowski, CA
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- Sep 3, 2007
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- 489
Re-read Robs post. If he only plans to buy one property it is not as important but have him talk to a broker.
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QUOTE (MikeMcCrae @ Feb 11 2008, 08:57 PM) Re-read Robs post. If he only plans to buy one property it is not as important but have him talk to a broker.
Your home is your castle. Literally, so don`t put leverage on it and don`t have a home larger than you need (for your lifestyle). The rest is investing; here leverage, in particular for real estate, is appropriate. If your friend wants to go this route, just have him join REIN.
Your home is your castle. Literally, so don`t put leverage on it and don`t have a home larger than you need (for your lifestyle). The rest is investing; here leverage, in particular for real estate, is appropriate. If your friend wants to go this route, just have him join REIN.