Forum Replies Created
Hi again
Those seem like great numbers to me. I have been taking a look at a model of :
IP property price = $250k
Deposit = 10% ($25k)
Interest only mortgage
Nomatter how I look at this, it seems to me that I would need to contribute $300 towards the mortgage per month.
The exception to this rule is should I be negative gearing against my day job income, in which case I'd expect to get about $4k a year back from the taxman for a few years. I guess that would cover the $300/month, assuming the negative gearing tax laws do not change.Is that pretty much the model you are looking at, or am I missing some golden nugget of information that makes the contributions less in the absence of negative gearing? (The reason I ask is that I really do not feel like having to earn a mega-salary for the next 30 years just to get $4k a year back
) Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
re: Jac .. what do you think about getting a townhouse in a suburb with good growth, close to city compared to outer suburb house with lots of land, both at relatively same price. One of the options I recently looked at was buying a renovated townhouse in a suburb close to city and beach .. nothing needs done, and after couple of years buy something bigger and possibly renovate and move in, while rent the townhouse. Does that sound good?
In Australia, the golden rule is that land goes up in value, not the dwelling. So the bigger your bit of land, the better. You'll only be able to afford a smaller bit of land close to the city, and will always be limited as to what you can fit on it (and presumably you will also be limited as to what you can do with it due to council planning restrictions. for eg you might not get permission to build a second storey, or build all the way to the back fenceline).
As for trying to guess which suburbs will go up in value – it is the golden question. There are some websites that offer free info on suburbs spanning the past 5 years, and it is always possible to buy more detailed or historical information. But it is historical information. It is not a guarantee of what will happen in the future.
If you feel that you will have the money to buy something close to the city, live in it for a while while you are young and want to go out on the town a lot, and then buy something bigger as well later on, go for it
However if you are unsure, you might be better off with buying something on a bigger bit of land a tiny bit further out that offers you a cheaper means of "expanding" later on. If you buy a property and live in it, you will be unable to negative gear the costs of purchasing (eg in Victoria where stamp duties will cost you a fair bit, it'd be nice to get some of it back as a tax refund). Your proposal suggests you will twice forfeit the right to negative gear stamp duty on property. Which is absolutely fine – just something to think about.
If you feel you can afford only one property, but want to live near the beach for a while, but in a bigger house elsewhere later, maybe you could just buy the bigger house now as an IP and put tennants in it, and you can rent something near the beach for a while.
There are infinite options. The thing you have to be realistic about is how much cash you have to throw at property, and ensuring you still have a life after all the bills are paid
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Wow – let me get this straight. You are 21, and intend to acquire 4 properties in 4 years. I am presuming each property will require you to put your hand in your pocket to some degree… I am intrigued. I am wondering what kind of well-paid role you are already doing at 21 to provide you with such a slushy fund
Impressive matie! I think I must be missing something – most properties I look at would require me to put my hand in my pocket and pitch cash in each year for quite a few years. Is this not the case for you? If not, do share the secret!Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
) 
However if you are unsure, you might be better off with buying something on a bigger bit of land a tiny bit further out that offers you a cheaper means of "expanding" later on. 
