Hi, I need some advice here
1)I do not own any property, but I am very keen to own one. There is a unit that we are renting, in Parramatta (NSW), which is for sale.We pay a rent of 240 per week. Now they want to sell it for 340K. Don’t you think this is very expensive, especially when unit prices have fallen down by 15%?
2)Just recently I bagged a 100K job. My partner is on 60K. I also have a brother, overseas, who will be here very soon. I am thinking of buying a house/unit on his name and on my parents name, as both my parents are retired (but they don’t live in Australia), and my brother is still a student. This will be a kind of trust. Do you think there will be any benefit by doing this way?
Tim, why would you want to put it in the family names?
why don’t you just set up a trust, with yourself as trustee/director of trustee company.
You obviously have the income to borrow money, whereas your parents and brother do not seem to.
Cheers
Melplus a 3.6% yield isn’t a lot.
Hey Tim,
I’m living in Sydney as well and, although this is totally my viewpoint only, prices in Sydney are not going to be doing any major improving price wise… esp with the interest rate hike. Are you in the investing world? In Steve’s book he mentions that he would have preferred to continue renting rather than owning while he was investing. You are not getting any tax benefits and its a huge liability that you pour your money into to pay it off so that you’re not paying as much.
We’ve just bought a place in Brisbane close to +ve geared and we continue living in Sydney renting. Our wages are much higher here than in Brisbane (although no-where near as high as yours!) and on your salaries you should be able to snap a few +ve geared properties which will return more than what you’re paying in rent, plus you get the tax benefits on whatever it costs you each year – interest, maintenance, small improvements etc.
Phil
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