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  • Profile photo of bluboybluboy
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    @bluboy
    Join Date: 2007
    Post Count: 1

    A few weeks ago I was looking to kill some time while I was stuck in Adelaide airport for a stop over. I picked up Steves 3rd book, and got right into it immediatly.
    Since then, I have been keeping an eye on a few areas, to get an idea of what the sort of prices are normal, and which ones seem like real bargins (Well, initially anyway… I'm always skeptical of the 'too good to be true' ones). I have a few questions about all of this, and hope you guys can assist me, or atleast point me in the right direction.

    First some details about myself. I am 23, in a stable IT job earning $60k +
    I have about $25k in shares at the moment that just arent doing anything, and somewhere around $10 – $20k in a high interest savings account (depending on my spending mood at the time =o) So not alot to begin with… But I'm trying to improve on that situation here.

    At this stage, there are two end goals I'm thinking about. whether I can start both, or just one at the moment is my main question!
    1) I would like my own property. The idea of dead rental money is increasingly frustrating and there is probably some emotion involved in just wanting 'my own house'.
    2) Beginning my property investing empire. (Only a few to start with obviously)
    I have found numerous possible places, but have my eye on two properties in particular. Both properties are within 2 – 5Km of Sydney CBD, are units in larger complexes and are roughly $200 – $250k each.
    A quick look at the figures (In a spreadsheet I made from the calculation examples in the book – Thanks again Steve) and they both work out to be roughly even (EG, the rental repayments alone are +/- $2,500 PA of the cost of the unit (Loan repayments, rental management, interest, insurance, rates etc)

    Now for my questions…
    First of all, regarding the first home owners grant, if I were to purchase the investment property initially, does this exclude me from the grant when it comes time to buy my personal property? Even if I purchase the investment property in a trust/company name?

    Should I move out of my current rental, into one of these units? (My current rent is the same as the would-be repayments of the new place. So would roughly work out as the same fortnightly cost to me… Excluding the initial costs).

    I'm guessing there will be all sorts of tax implications. Not only in my personal name, but also the trust/company name as well. Can anyone recommend a good accountant in the Sydney area who is able to assist me with these types of enquiries? (Also, I dont want to skimp on the accountants fee, but at the same time I dont want to be taken for a ride. What is the normal sort of charge for this type of work?)

    Any ideas? Any pointers? What are my options from here?
    Hopefully, I've included more than enough information about my situation – If I have forgotten anything, just let me know

    Thanks guys!


    Ben

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