Finance Questions

Posts Tagged ‘housing’

Question: Is a rental house bought with a commercial loan taxed differently than one purchased with a normal home loan?

I financed 100% with my partner through a commercial loan because it was unsecured and simple. It's a house near an industrial area that we were going to rezone and sell commercial. However, the costs associated with rezoning were excessive and now I would like to just sit on it for a while but we are paying high commercial loan rates and I would like to get the monthly payment down.

Answer: Not as property taxes go...but there is obvious differences as far as income tax deductions and capital gains taxes upon sale go.

To get the payments down you will want to refinance that into some type of residentail product with say a 5 year fixed term (for total payment security), or an adjustable rate product for the absolute lowest payment (these are ok for short term, 2 - 3 year solutions). Right now rates are down (from what they have been the past 6 months).

Hope this helps.

Tom Voli
[email protected]

LIC Housing looks good for trade: Panda

Question: How do I find a partner to help finance real estate investments?

Answer: Investment Clubs, blogs, real estate forums, local real estate agents.

I write a blog on the subject of credit management, mortgages, real estate trends, etc. Check it out for more information that may be helpful.

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