# Taxation ? can housing & car loan reduce the income tax



## Jaywayne (Jul 2, 2008)

Hi everyone, I'm new in this forum. I just got my Australia PR and are thinking of going to Adelaide by early next year. i intend to buy a smal house and car in South Australia. Should I fully pay both in cash or apply for loan and just pay the minimum down payment,follow by monthly progressive payment? My friend told me that I can have income tax deduction if I've loan repayment monthly. Can anyone kindly advise me. Thanks


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## kaz101 (Nov 29, 2007)

Hi Jaywayne, 

You probably need to check this with an accountant since I've not completed an Aussie tax return yet.

Be aware that on any loan you will be paying interest so you need to find out if any tax deduction is worth it. 

Also when getting a mortgage things like car loans, and credit cards count against you in Oz (where as in the UK they are in your favour!). Don't forget to check out prices too since even small houses in Adelaide may be more than you are expecting to pay (see "PLEASE READ...." post for property links).

It really depends on your individual circumstances, how much money you have, how quickly you get a job etc. 

We got a mortgage for our home with a 30% deposit and paid for the car out right. The reason that we did this is to invest the money that we didn't spend on the home loan and get a better return on it. That way that money can be paying off the monthly mortgage amount 

Regards,
Karen


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## Jaywayne (Jul 2, 2008)

Thanks Karen. is it wisely to put the money in the fixed deposit (Australia Bank) and earn interest than to pay up full in purchase of house and car? Sorry for being ignorant.


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## kaz101 (Nov 29, 2007)

Jaywayne said:


> Thanks Karen. is it wisely to put the money in the fixed deposit (Australia Bank) and earn interest than to pay up full in purchase of house and car? Sorry for being ignorant.


I didn't say that we were putting it in a fixed term deposit (about 8.5% is available at present) since we do other investments too  

People have different investment strategies to suit their circumstances so no need to apologise at all. 

Regards,
Karen


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## Jaywayne (Jul 2, 2008)

Thanks again Karen....any advise on what to invest in South Australia ? it's ok if not convenient to share here...


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## kaz101 (Nov 29, 2007)

Jaywayne said:


> Thanks again Karen....any advise on what to invest in South Australia ? it's ok if not convenient to share here...


I didn't say we were investing in South Australia either 

As I said it depends on your personal investment strategies, what is good for one person may not be good for another because it depends on what you are looking for. If you need any more info check out the link in my signature or drop me a PM (the PM system won't work for you until you've done more than 5 posts). BTW I'm not a financial advisor so if you are really thinking about this it's worth contacting a financial advisor. 

Regards,
Karen


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## ani (Jan 28, 2009)

*about Car Loans*

Hi,
This is ani. a lot peoples like the cars. but I love so much to the car. and my ambition is a one car. I got it the car. about the car loans is a very easy to way. Banking, and finance easy to way. and about the loans is a finance and to way.

==============

ani


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## melloncollie (May 24, 2012)

ani said:


> Hi,
> This is ani. a lot peoples like the cars. but I love so much to the car. and my ambition is a one car. I got it the car. about the car loans is a very easy to way. Banking, and finance easy to way. and about the loans is a finance and to way.
> 
> ==============
> ...


Hahahahaha!! Too good .. Post of the century. Lol.


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## superm (Jul 1, 2012)

ani said:


> Hi,
> This is ani. a lot peoples like the cars. but I love so much to the car. and my ambition is a one car. I got it the car. about the car loans is a very easy to way. Banking, and finance easy to way. and about the loans is a finance and to way.
> 
> ==============
> ...


Lolz..


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## teejay212 (Aug 20, 2010)

Melloncollie & Superm,

Think it is funnier that you's are commenting / making fun of a post that is over Four (4) years old !! How sad is that !!! LOL


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## superm (Jul 1, 2012)

I know 
That surprises me even more that no-one noticed this before and Melloncollie did now 
But how ever old that is - fact remains same - its funny


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## melloncollie (May 24, 2012)

teejay212 said:


> Melloncollie & Superm,
> 
> Think it is funnier that you's are commenting / making fun of a post that is over Four (4) years old !! How sad is that !!! LOL


Lol. As sad as it can get, there's never a dull day with trolls :-D

I just happened to bump onto this thread while I was looking for mortgage threads relevant to the aussie context.


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