I recently invested in my first IP in Homebush West – Inner West Sydney.
The property is brand new so I received the full grant.
2 bedrooms, 2 bathrooms, large storage room next to undercover parking
Purchase Price: $340,000
Rent potential: 380 – 400 p/w (let me know if I’m wrong)
Has anyone else invested in this area, or surrounding areas?TheEverydayTraderMember@theeverydaytraderJoin Date: 2009Post Count: 1
Your figures look good to me.sydney08Member@sydney08Join Date: 2008Post Count: 8
Happy New year!
Yes, your numbers look right, though my partner was able to negotiate rent at about $415-$430, same area…
Amit: please email me your email address and a contact number so that I can add you to the list, as I haven't come up with the next dates this year, its been pretty busy for me, moving house, a baby on the way, etc, etc, but I will definitely keep you uptodate with next meeting dates.
my email is [email protected]
AnnaaurorParticipant@aurorJoin Date: 2009Post Count: 6
I've looked at homebush west but was put off by the large numbers of units in the area – might make it hard to sell as there's generally lots of others selling at the same time.
you need to live in it for 6 months to claim the FHOG, but when you turn it into an IP make sure you get a depreciation schedule done to maximise cashflow.
Sorry if this sounds stupid, but what is a depreciation schedule, and who normally goes through it?
What's a rough figure I can claim back? I heard it was around 5k, for the property I'm purchasing.
My unit block has around 25 units and all sold in 2 weeks. However, I hope I made the right decision to buy here. I’ve been looking at the rental value, and it seems to be renting quickly – around 380-400 p/w.aurorParticipant@aurorJoin Date: 2009Post Count: 6
Live in it for 6 months. Rather live in it when it brand new!
Do you think its better to rent out first, as I can claim this FY?Edvico_kvnMember@edvico_kvnJoin Date: 2008Post Count: 46
Renting it out in the first 6 months would be a big mistake!
1. You will breach the rules of the FHOG and could be asked to cough up the $24k back if you are unlucky enough to be audited.
2. You will lose the eligibility for the 6 year CGT main residence absence rule (and have to end up paying CGT when you eventually sell the IP).
The extra cashflow for the first 6 months may be tempting but better to live in it to establish it as your main residence first, before renting it out.
Feel free to email me if you want a copy of my article on the 6 year rule mentioned above.
Thanks for the advice Kevin. Appreciate it.
However, I was under the assumption that I would have to reside at the property within the first 12 months. So I could rent for say 8 months and reside after that period (before it reaches 12 months).
Also, it would be great if you can let me know if I require a 'depreciation schedule', or if an accountant can take care of calculations.wealth4life.comMember@wealth4life.comJoin Date: 2003Post Count: 1,248
Hi Rambo … don't assume and take good advise,
Your property looks great … work hard and invest as much as you can into the mortgage to reduce debt which will increase yr cash flow when u move out after 6 months … hint!!!