Hi Every one,
My name is Johann i am 24 year old from melbourne. I have two IP properties under my belt.
IP 1) Loan Amount $149,000, Loan Repayment: 185.00 a week Rent Income: 260 a week,
I Purchased property at 185,000 and has been valued at 260,000 to 280,000
I have had this property for 2 years.IP 2) Loan Amount $268,000, Loan Repayment: 421.00 a week Rent Income: 280 a week,
I Purchased property at 285,000.
I have had this property for 1 month.I dont have any other debts and i earn about 60k to 80k depending on sales "etc".
a) Know what is the best way to keep all this information organised?
b) IP 2 is a property i might move into in the next two years IP 1 is just an investment.
– Should i try put as much money into IP2 as i will be moving into this later on?
– With IP1 do i just let it pay off by it self? or even sell and use the capital for future invesments?I am very confused on where to put my money?
thanks
JohannJpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Property two as it is costing you money of $140 a week in cash flow .
When you move into IP2 it you will have to find $421 a week, any interest will be no tax deductible when you move into it.Selling property one will incur capital gains tax on $80,000 to $100,000 being after 50% discount a sum of minimum of $40,000 being added to your yearly income for tax.
Property one is making you money !
Hi, sounds quite simple. You've done really well with IP 1. Don't need to do anything – yet. Appears to me you're suffering the uncertainty after doing something.
Have you looked into depreciation benefits? Throw in whitegoods & furniture & increased rental or even same rental with depreciation & -ve gearing will bring IP2 to a better position. The cashflow from IP1 balances the deficit from IP2
I'm sure you can do the sums yourself & come to a decision that best fits your own needs.
No need to be jittery 1 month after buying. If you like IP2 well enough to make it your home, save enough [an offset account is best] to balance repayment with what rental you're currently paying then your financial position is no different from before.
This is what I always thought was a good way. Buy IP for future PPOR, renovate/improve [claiming expenses/depreciation while it's a rental] then some years down the track [after milking depreciation & -ve gearing benefits], take it back, clean it up & live in it.
Sounds simple, in practice maybe a bit harder.
Good luck
KY
Thanks Guys…
I think i might just pump as much cash into IP to and once i bring the loan down il re finance.
Shoud be allright.thanks Guys
Have a good weekendJpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
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