Should my husband buy an investment property for tax breaks? How will it...

[tired lady]

...affect the amount of tax he pays? If we end up with mortgage repayments of $2800 a month and $1400 a month of rental income?

[hubertxiv]

Consult an Accountant is the beat advice I can give you..
You obviously no absolutely nothing.

[bitch]

nah dont

[Yellow Mochiko]

Some people (read: accountants) believe in one extreme - be conservative, minimise borrowing, if at all, pay your non deductible mortgage down as much as you can.

Some other people (read: accountants) believe in the other extreme - go gung ho invest in forestry, pretend the average return is more than 2% and give us 10% trailing commissions from the clients' money. (If you don't get what I mean, other accountants that read this should know.... )

Don't always believe your accountants. Shopping around for opinions is good. Accountants are human beings. We are NOT immune to greed and self interest. We certainly do not know everything. We are bean counters with some tax knowledge - not brain surgeons - definitely not angels. And we certainly like money. Always be careful with that virtue.

Should your husband buy an investment property? Never buy a property investment solely and exclusively for a tax break. The same rule applies to all forestry MIS. Think of the end result, the investment performance itself. Do you think the capital gain at the end will worth the sacrifice ($1400 hole in your pocket every month less the tax effect, which for most people is 30%) now? Don't forget you still have to cough up the money to get the tax deduction.