Hi Everyone,
Little bit of background information first. I am looking to break into the property market for the first time. I am earning a decent wage $100,000+pa and I am debt free. And live in Brisbane.
I am stuck with the decision on whether or not to buy a PPOR or an IP first.
My main reason for being undecided is if it is going to be more beneficial in the long run in terms of tax purposes to buy and negative gear an IP or for me to take advantage of the first home owners grant and get into my own place as soon as possible?
If anyone has any advice on my predicament it would be greatly appreciated.
Thanks and Happy New Year!!!
Hi bigdell
why not do both? Purchase a PPOR and use it to leverage into investing.
Heres an article I wrote on this exact topic.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Perfect Jamie!
That is exactly the answer I was after. I did have that idea but wasn't sure if I was going to be better off with the tax benefits of the IP first.
I think its time to get onto a broker and get the ball rolling!
Cheers!
Kendall
It comes down to a lot of things including the numbers and also lifestyle. There are a lot of investors who have a large portfolio as they have bought in lower entry point suburbs whilst renting close to the CBD (due to work or lifestyle reasons). This allows them to take advantage of the negative gearing benefits. However don't purchase a property for negative gearing. Purchase a property based on your strategy whether that be development, subdivision, renovation, etc.
This is why you need to always do the cashflow numbers and see what scenario stacks up.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Also good point about talking to a broker as a broker can help you crunch the numbers. Find yourself a local broker as it sounds like you may have a lot of questions to run through and it may help being face to face.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
bigdell wrote:Perfect Jamie!That is exactly the answer I was after. I did have that idea but wasn't sure if I was going to be better off with the tax benefits of the IP first.
I think its time to get onto a broker and get the ball rolling!
Cheers!
Kendall
You're welcome – I'm glad it helped.
It's how a lot of my clients have started out.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks so much for the advice guys very much appreciated! Has been taken onboard and will put it into practice!
Cheers
Kendall
Like Jamie suggested try to do both simultaneously, but I still recommend you to talk to an experienced broker because I am sure you will have plenty of questions down the way.
My List of questions grow everyday with every click of the mouse on this forum! I am so glad I have found it nothing like using other peoples experience and sharing your own rather than learning the hard way every time. I wish I had the deposit ready to go now, but I think the decision to pay off my personal loans before saving for a deposit will pay off in the long run.
If you're in need of face to face contact then Richard Taylor who posts on this forum is your best bet – he knows a thing or two about finance structuring and property investing.
Cheers
jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie appreciate the wrap.
Dell i am in the UK for another 10 days but be more than happy to buy you a cuppa and sit down and work thru some of your questions
Fllck me an email and we can pencil in a date / time to suit.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for the info again guys.
And Richard email is on the way!
Cheers
Kendall
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