Home – New Forums Money matters Which loan to pay off first??

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  • #994899
    john 98765
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    Hi,

    I would like to know which loans I should pay off first.

    We have a home loan (330k) and a business loan (700k) both are property. It sounds like the general rule is pay off the home first as it is not tax deductible.

    I am trying to pay both off as quick as I can to minimise paying more interest while maximising my tax deductions. I know my profession but really have no clue when it comes to the money side of things. Yes, I will ask my accountant when I see him next.
    Thanks
    John

    #1199063
    Lisa Crocker
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    Hi John,

    Welcome to the Flying Solo forums! We have a lot of accounts and finance people around hear, so I am sure some of them will step in with their thoughts.

    All the best,
    Lisa

    #1199064
    Taxopia
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    john 98765, post: 235503, member: 81322 wrote:
    Hi,

    I would like to know which loans I should pay off first.

    We have a home loan (330k) and a business loan (700k) both are property. It sounds like the general rule is pay off the home first as it is not tax deductible.

    I am trying to pay both off as quick as I can to minimise paying more interest while maximising my tax deductions. I know my profession but really have no clue when it comes to the money side of things. Yes, I will ask my accountant when I see him next.
    Thanks
    John

    Non deductible interest is generally best to get rid of first. However, there can be other factors so consider getting someone to review your entire situation.

    #1199065
    JoelRobbie
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    Hi John,

    These kind of money questions come up all the time and it’d be nice if we had a way to get a quick answer that takes into account all of the financial circumstances surrounding decisions like this.

    We’ve launched http://www.nod.money to do exactly that. You ask a question (like the one above) and you can get a financial professional to give you the answer online for a small fee. You provide them with a dashboard of your finances so they can make an informed judgement on your behalf.

    Check it out if you get some time. At the very least, please ask your accountant when you next speak to them as I think financial professionals definitely bring clarity!

    #1199066
    LucasArthur
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    JoelRobbie, post: 235667, member: 81465 wrote:
    Hi John,

    These kind of money questions come up all the time and it’d be nice if we had a way to get a quick answer that takes into account all of the financial circumstances surrounding decisions like this.

    We’ve launched http://www.nod.money to do exactly that. You ask a question (like the one above) and you can get a financial professional to give you the answer online for a small fee. You provide them with a dashboard of your finances so they can make an informed judgement on your behalf.

    Check it out if you get some time. At the very least, please ask your accountant when you next speak to them as I think financial professionals definitely bring clarity!
    Hi

    Think the question was asked in the hope the guidance may be provided within the forum from some of the regulars ;)

    Some decent answers to start, and agree wholeheartedly one should approach ones accountant for tailored advice in this area – but generally speaking personal debt is best to go first as there are generally no tax benefits :)

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1199067
    john 98765
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    Thank you everyone for the informative replies. I will meet with my accountant to go over the finer details.
    Cheers
    John

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