Offsetting tax loss...

[zerocool2009]

Thanks, Cray.

I'm very proud of paying it off so soon too.

I made it more than four decades through life without ever getting myself into debt. Taking on a bond was a major mental hurdle for me.

Debt can be your friend, so is sars, and use your bond wisely

 

[Merlin]

Why dont you buy more property ?

Debt is only a mindset.

I started off buying 1, then it became a passion (hobby)

Reset your bond back to 20 years, pull money out, and buy your next place cash

The plan is to buy more.

I've got some short term priorities at the moment, however I'm hoping to be in a position to put a deposit down on a second property by mid 2026. I'll then pay excess into that bond, to get the repayments down to a reasonable number ASAP.

I'm not enthusiastic about playing with my primary residence to do so though. I'm risk averse.

 

[zerocool2009]

The plan is to buy more.

I've got some short term priorities at the moment, however I'm hoping to be in a position to put a deposit down on a second property by mid 2026. I'll then pay excess into that bond, to get the repayments down to a reasonable number ASAP.

I'm not enthusiastic about playing with my primary residence to do so though. I'm risk averse.

Correct. My primary bond is R0 owing for 15 years, not touching that.

Using my other bonds to "regear" and enrich (building my little empire).

 

[B-1]

You can draw the money from the access bond and put it in a short or medium term investment but you would need to calculate how much rental income you can write off against interest vs the tax paid against the investment returns.

 

[Jan van Riebeeckstad]

@sars FYI

 

[richjdavies]

Just to check OP says his property covers costs and his rent on the other place... Is that how tax works?

I always assumed rental income would be income (net of those expenses), but not the expenses of living?

I. E. Renting one place while renting out another means you are being taxed on 1 rental income more than otherwise... Is that not the way it works here?

 

[zerocool2009]

Just to check OP says his property covers costs and his rent on the other place... Is that how tax works?

I always assumed rental income would be income (net of those expenses), but not the expenses of living?

I. E. Renting one place while renting out another means you are being taxed on 1 rental income more than otherwise... Is that not the way it works here?

If you rent, and being a landlord, you cant write off your rental expenses.

If you make R100 000 profit a year on your rentals (as in receiving), Sars will add R100 000 to your taxable income.

If you pay R100 000 in rental expenses where you live, it has nothing to do with the R100 000 rental income received

 

[zerocool2009]

What I am personally doing, the rental I received from one of my units, I put that in a RA! Making sure I hit the cap for the RA regulations.

 

[richjdavies]

If you rent, and being a landlord, you cant write off your rental expenses.

If you make R100 000 profit a year on your rentals (as in receiving), Sars will add R100 000 to your taxable income.

If you pay R100 000 in rental expenses where you live, it has nothing to do with the R100 000 rental income received

So in the example above isn't that pretty dumb? If you rent one and own and rent out another you'll lose 28-40% of the net income to tax?
But if you just live in the one you're renting out, no income?!