All Topics / The Treasure Chest / 110K

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  • Profile photo of venturaventura
    Member
    @ventura
    Join Date: 2003
    Post Count: 7
    September 5, 2003 - 1:20 am

    Hi All

    This site is AWESOME:))

    I have got 110K in my pocket after selling my hse overseas. was wondering whether I should buy my 1st IP and rent myself or just buy a family home.
    any advise on the PROS & CONS . THANKS IN ADVANCE.

    Profile photo of StrikerStriker
    Participant
    @jamescameron
    Join Date: 2003
    Post Count: 33
    September 5, 2003 - 1:46 am

    Ventura
    I am in a similar boat to you. I think you are better to buy a IP and rent yourself provided that the rent youpay does not exceed what you would otherwise be paying in loan payment on your own home. This way the interest on your IP is tax deductible and so are all the other associated expenses with an IP. By renting yourself, you may be able to obtain a better property than you otherwise would if you had to buy your own home to live in.

    James[:)]

    Striker
    Email Me

    Profile photo of wayneLwayneL
    Member
    @waynel
    Join Date: 2003
    Post Count: 585
    September 5, 2003 - 2:01 am

    quote:

    Ventura
    I am in a similar boat to you. I think you are better to buy a IP and rent yourself provided that the rent youpay does not exceed what you would otherwise be paying in loan payment on your own home. This way the interest on your IP is tax deductible and so are all the other associated expenses with an IP. By renting yourself, you may be able to obtain a better property than you otherwise would if you had to buy your own home to live in.

    James[:)]

    I agree,

    Just flogged my ppor to move back to Perth and rent is dirt cheap there. In the areas I’m looking in rental returns are 3-4%

    However I will buy a new ppor when I find some value.

    Meanwhile I will have my eyes skinned for some ip/wrap/reno/development opportunities.

    Wayne

    Profile photo of venturaventura
    Member
    @ventura
    Join Date: 2003
    Post Count: 7
    September 5, 2003 - 2:14 am

    Cheers !

    Profile photo of vik_famvik_fam
    Member
    @vik_fam
    Join Date: 2003
    Post Count: 29
    September 5, 2003 - 10:38 am

    You know if I had $110K I would be buying more that one property…

    I would use as little as I could to pay a deposit on one property, leave the rest in a CMT and spend time buying as many properties as I could.

    I guess it depends where you are, and how much property values are, but I am in QLD where $200K buys something quite liveable, 10% deposit each, $110K would buy 5 and have some cash for improvements.

    Does anyone else agree?

    Victoria
    [email protected]

    Reason can answer questions, but imagination has to ask them. — Ralph Gerard

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    September 5, 2003 - 11:42 am

    You could buy 4 properties for wrapping and make approx $16,000 passive income per year.

    But you would have to pay tax on this, and then pay for your rent with after tax dollars. So maybe not a good idea after all. Depends on your circumstances.

    Terryw
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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