Hello folks, it’s Glen from 21st Century Group, (investments, constructions, property management). I’ve been doing this for the last 27 years, owned my company for 26 and this is 2020. I’m going to talk to you about rent and tax deductions going against your own home mortgage. 

Now, something that I do have to clarify and let you know up front is that I am NOT a financier. I’m not a licensed financier. So all that I’m going to do is scrape the tip of the iceberg. Okay? You’re going to takeaway what I’m telling you or talking to you about, take it to your financier and tell your financier some crazy person on the web whatever, spoke to me about something like this. Can it happen?Okay? Or take it to your bank. And each finance and each bank has got a different way of setting it up. Okay? It’s phenomenal. Try it. Talk to your financier or talk to your bank. Great! Now where’s my whiteboard? Okay. You’ve got a home loan. Okay? Is the interest on your own home loan a tax deduction? No it’s not. So I know it’s your own home but at the end of the day all the interest which are paying the bank in a way is dead money. Okay? So how can we reduce this? Well you could put more money in it. That’s one way of doing it. Right? But if you’ve got an investment property. Okay?There’s a second way of doing it. And it’s quite easy, really! All you have to do is talk to your bank or talk to your financier. I’m not a financier. I’ve said that a few times now. So let’s take a look at it like this. 

You’ve got the bank which owns your home loan. You call that home loan, P & I, principle and interest. All right? Principal and interest. No tax deductions on that. Alright? Fair enough? Good. Then let’s say you’ve got an investment property. Now if you’re paying principal and interest on your own home loan, the aim of it is to pay off your own home loan faster, but also have an investment property, so that you can build on your wealth, capital growth and all of that all right. So to make it affordable it’s best, its best and depending on your circumstances and if you want to know how it works, email me, ring me and I’ll tell you how it works. All right? 

If you have an interest only loan. So you are putting the least amount, you’re putting in the least amount of money to hold this giant big investment. Fair enough? Good. Now you’ve got your rent and tax deductions coming in. Instead of putting it into that account what you could do, there are many ways of doing this so I’m going to make it so basic, it’s not funny. Right? You could let’s say open up an offset account and call it investment property offset account or whatever you want to call it. And you dump the rent and tax deductions into that account which is linked to your home loan thereby reducing the interest on your own home loan. Follow me on that? But then you’re gonna say. Oh by the way! If you’ve got some extra cash remember in one of my videos I did say put aside some money. Remember I spoke about that, you can put that into that as well. So if it’s $50 bucks a week or $100 bucks a week make sure that you can put in, put it into that. You’re building on that. Okay.

But then you’re gonna say, hey Glen but I’ve not paid anything out of that. Yes you will, because once a month and you could set this up with your bank or your broker your finance bro can set it up. Alright? Whatever interest is supposed to go from that account. Sorry, Whatever interest is supposed to go into this account gets transferred automatically from this in to that. Follow me on that? Good. 

So basically you’re borrowing from Peter to pay Paul because Peter is a tax deduction but Paul is not. But at the end of the day, Peter has got to be paid, because if you don’t pay Peter then the banks will come after you and you do some sort of fraud. All right. So don’t do that. All right. 

Once again, I’m not a broker, I’m not a financier, no finance broker. But I know my investments. I’ve been doing this for 27 years and this is 2020. Okay. Email me and I can show you this in detail, scrape.


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