hi all
me(plumber),wife and kids from london,r going to live in oz for a few years on a perminent resident visa to experience a bit of life downunder.
with the capital from the sale of our house we want to buy a house to rent out.
please give me some thoughts,
should i(a) buy a uk 2 storey house with 1 bedroom,1 bathroom,lounge,kitchen,back garden,for £133,000 gbp, which will be rentable for £650 gbp per month,less 10% agent letting fees,less gov taxes…
or(b)buy a property(or 2 )in vic near melbourne to rent out…
i have no idea what is available in oz as i have never been,
we will be going on a one way ticket jan 2004.
and i will be looking for a plumbing job straight away.
could you give me some ideas in or around melbourne
thanx
rday
I’d check some of the more common internet sites like http://www.realestate.com.au or http://www.domain.com.au to give you an idea of what you can get in Melbourne for around $300k. You should get more than 1 bedroom with luck.
G’day rdadrday from a fellow Pom
Firstly $133 GBP (sorry my keyoard doesnt have the Pounds sign) seems very cheap. I still have a few properties in Bournemouth and the area is almost equivialent to London prices. If you havent been here yet i would personally settle in, find you feet and then decide. I have come across many a fellow Pom who came here on a 1-way ticket and then purchased another to go back. I have been in Oz for 11 years and would never go back other than for holiday but i am in Qld.
Cheers Richard
[email protected]There is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Balance of what I was going to say was you will have no problem in finding work with a trade like you have. If any problems come upto Brisbane we have a queue a mile long of people wanting a reliable plumber. Anyway whatever you decide i am sure you will enjoy it just might miss the warm beer and the Saturday soccer for a week or two. Good Luck
Cheers Richard
[email protected]There is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
thanks
please tell me what neg gearing
and
11 second rule
means.
Hi Rday,
I have no idea of investing in the UK.
However,I beleieve that Australia is the place to invest,if one has money to start !
Also try the website: http://www.property.com.au
Good luck
Ash
thanksplease tell me what neg gearing
and
11 second rule
means.
Negative gearing is simply writing off any loss you make against your taxable income. For instant, I borrow $100,000 to buy a house. I pay $5,000 in interest, another $2,000 in government charges (rates, etc) and another $1,000 in sundry expenses (allowable taxable deductions).
I rent out the house for $100 per week. At the end of the year I have made $5,200.
So, I’ve spent $8,000 in order to make $5,200. As a result, I’ve lost $2,800 on the deal (obviously hoping to make a capital gain later. What negative gearing does is allow me to claim that $2,800 as a tax deduction.
As for the 11 second rule, this is simply a way to determine whether you can get a 10.4% return on investment.
If a house rents for $100 per week, you should half the amount per week and add three zeros to it to see if it’s a worthwhile investment. So – a property that will rent for $100 should cost around $50,000 for that 10% return.
(It should really be called the 1.1 second rule, cause it doesn’t take 11 seconds to figure out
)As for your London place, sure it’s only 1BR, but I’d be inclined to keep it. London, Sydney, New York – while they’re overpriced, once you get out of one of those markets it’s difficult getting back in.
thanks guys
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