Forum Replies Created
Hi KH85,
I'm also new to the forum, think I may be able to help a bit.
What state are you in KH85? Here in NSW FHOG has now changed, unless its a newly built or 'off the plan' home, the stamp duty exemption is no longer available.
But the helping bit I mentioned,
1. I did exactly what you are talking about, Purchased my first property using FHOG in 2008, Lived in it for 6 months (during which time I also rented two of the rooms out to boarders) then started renting it out.
2. I'm not so sure about the loan situation, I had my loan changed to interest only on the basis that I was moving overseas and the property would be a rental. Not sure if this loan setup was the most efficient but it seems to be working well, property is positively geared.
Using the '6 year rule' you are able to rent the place out and avoid CGT on future sale, a few rules involved.
I have been able to claim depreciation, Interest, loan costs etc as per a normal Investment Property.
Hope this helps
Cheers
Wilba84
Hi Guys,
New to this forum, very glad I stumbled upon it so far very informative..
I currently own an IP which was my first home (FHOG) renovated it (cosmetic) and have it rented out (probably around neutrally geared) currently renovating my 2nd place (more in depth reno) I have read whatever I can over the last couple of years to learn. (just some background)
My question that I have wondered for a while… Is with the general rule of thumb that property prices, on average, double every 7 – 10 years (depending on area etc)
I may have an over simplistic view.. I understand people will always need somewhere to live, investors always need investments etc etc and that prices in general of anything will rise with wages, inflation etc but how can property prices continue to rise at a rate any more than that of wages inflation etc? Surely at some point it will have to plateau out and for anyone to be able to afford to buy (and therefore keep demand up) growth will slow to that more inline with wages inflation …3-6% ?
Mathematically I dont think this equates to a price double every 7 to 10 years?
I hope that makes sense for someone to help with my conundrum and let me sleep at nighty ; )
Cheers guys
