Mortgage Minute – LTC


LTC’s in 60 seconds

Property investors often use an LTC, which is officially know as a Look Through Company. Why? well, there are a couple of different reasons. Firstly, you want to be looking at your TAX advantages, especially if you’re using negative gearing or you’ve got multiple properties in the mix, you want to look at your ownership structures. Quite often, property investors are buying in their personal names, and now it’s time to re-allocate how the property is owned, whether that’s adding or removing people, and whether you need to shift it across and that it involves the mortgage structures. So if you’re going to be buying more properties, you’re probably going to be using an interest-only mortgages for some of them, especially on the investment properties and you want to load up your investment properties, load up as much of the debt as you can onto the investments for claiming back the interest expense. So when you’re talking to your property accountant, ask them about Look Through Companies or LTC, and see what they say