Hi guys,
First time poster here, thought i should register after i noticed how many posts there where and the quality of advice given.I am 25yr old married no kids, living with my folks, paying $200 a fortnight in rent and have recently brought our 1st IP on 100% lending for $192,100, which is currently renting for $200 a week.
We both work and earn approx $3500 a fortnight, we have began to put every cent we earn into the repayments and live of a credit card.
My question is: We want to purchase a house for us to live in AND we want to go on a holiday around the world at about the cost of $20k, what steps should we take to reach this goal and what sort of a reasonable time frame should we expect this to happen.Regards
I want to make it!!Stop putting every cent into this IP imediately.
Convert the loan to IO if possible and pay the minimum.
In the meantime save every cent you can in an offset account or in a high interest online account in the lowest earners name.
Why?
If you pay down a substantial amount on the IP loan then buy your home you will be in the unfortunate situation of having 100% nondeductible debt against the PPOR and equity in your IP. I hope you can see that this is the opposite situation that you want!
If you can buy a home in your area for a similar sum then I suggest aiming for a 10% deposit at least – 20% would be better. You can work out how long it will take you to save this. You can then claim the FHOG which will help a lot.
Any more questions?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Simon,
If Zaksta has already purchased an IP, is it still possible for them to claim the FHOG?
I too have purchased an IP only (1st property purchae) about 18 months ago and would be very interested in learning about the ability to claim the FHOG, as we are ready to buy another property…..
We too purchased on 100% finance with an P&I loan, but due to having saved more $ in the mean time are looking to maybe convert to an IO loan if possible to allow us to save extra cash (currently approx $700/week surplus cash to save for further property purchases as well as approx $27K in savings).
We rent at the moment also. What would be the ideal way for us to go to maximise our immediate ability to save more $ per week and maybe buy more property with our current savings?
[biggrin]It is only your thoughts that create your future – Be careful what you think!
nathan210
From my understanding if you or your partner has never owned a house, or you have never lived in your IP you are also eligible for the FHOG.
Regards
Regrow
You are a fool for 5 seconds if you ask a question, but a fool for life if you don’t.
Hi Zaksta
personally, i think you need to focus on either investing or the trip !
Sorry if i’m a party pooper, i believe in Delayed Gratification. Maybe the trip has to wait.Reward yourself if your investment make you $50,000 then maybe you can spend 20K , you need to decide that.
For me retirement was a goal, and i achieved it in 6 years of investing, (but largely helped by the boooming Australian property market in the late 1990’s-2003). It was after i got to my target that i started to enjoy the fruit of my efforts.let us know what you decide to do.
regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
Thanks guys,
Your advise is much appreciated.
I think i may have to put going on my trip on the back burner for now and concentrate on purchasing a house for my wife an I.BUT!!!
If it is possible to have my cake and eat it, i would like to find out. At first i thought perhaps i could borrow 20-30k extra on top of my next home loan and use that money to service my trip, while still being able to come back to a house to live in.
Any thoughts or ideas would be appreciated.
Regards.
Do what you can before you have kids.
It doesn’t have to be a world trip. But go somewhere and enjoy your youth. If you both feel like you need a holiday – take a holiday.Simon is right, stop paying extra money into the IP. Interest Only.
Mal
Getting out of your comfort zone, can help you become comfortable
Originally posted by nathan210:Hi Simon,
If Zaksta has already purchased an IP, is it still possible for them to claim the FHOG?
I too have purchased an IP only (1st property purchae) about 18 months ago and would be very interested in learning about the ability to claim the FHOG, as we are ready to buy another property…..
We too purchased on 100% finance with an P&I loan, but due to having saved more $ in the mean time are looking to maybe convert to an IO loan if possible to allow us to save extra cash (currently approx $700/week surplus cash to save for further property purchases as well as approx $27K in savings).
We rent at the moment also. What would be the ideal way for us to go to maximise our immediate ability to save more $ per week and maybe buy more property with our current savings?
[biggrin]It is only your thoughts that create your future – Be careful what you think!
Convert to IO and pay minimum.
You can get the FHOG if you bought the IP after Jul 2000 and never lived in it.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Zaksta,
We wanted to travel but having big loans and working in Australia makes it expensive, so we are now living and working overseas. I see this as a way to have our cake and eat it too. But, buy your house before you leave, get the FHOG and then get someone in to rent it out. Once OS you can pick up the cheap deals to travel. Granted you still have to work but you’ll see a lot more than a short holiday and belive me $20,000 Aussie isn’t really a lot of money with the strength of the dollar.
As you’re under 31 you can get visa’s fairly easily to a lot of commonwealth countries for 1 to 2 years.
Look at different ways of making things happen, but I wouldn’t use home equity to fund a short term holiday, that should be used to buy the next IP!
Good luck,
Thomas
Originally posted by thomasp:Hi Zaksta,
But, buy your house before you leave, get the FHOG and then get someone in to rent it out.Don’t forget to factor in living in the house for 6 months to qualify to keep the FHOG.
Although if you kept your stuff there whilst OS with no rent you may still call it home? I don’t know where you stand here?
Anyone?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hey there
I am pretty sure that to be entitled to keeping the FHOG, the property needs to be your MAIN place of residence. Ie appearances are not enough, at least one of the owners needs to be living there the majority of the time over a six mth period.
Good luck
If I went on holiday and locked up my place who would suggest it wasn’t my home still?
I think this warrants a phonecall to the relevant authority rather than just speculation.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I would pay everything into this investment property that I could afford to do. When the times comes to buy a PPOR I would refinance then revalue the investment property.
I would use a split loan and claim the total value of the IP with the interest portion only. depending on the age of the property i would get tax advise on this and not rely here for that.
Work smarter.
resi
Phil,
Are you suggesting this person refinances an IP to buy a PPOR and claim the refinanced amount on tax?
The purpose of the loan determines the deductibility. If the loan is to buy a PPOR then it is not deductible regardless of what it is borrowed against.
This is so wrong and I quite frankly expect better from you. Or is this someone pretending to be you?
Zaksta, I do agree that you need to seek an accountants advice rather than us strangers…. but please be very careful following Resiwealth’s advice in his last post.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Zaksta,
You know that cake you were talking about? eat it.
Put it into yourselves not a house. Sorry but I think a happy marriage comes first, even if it involves an expensive holiday.Phil did you hit the turps a bit early? If not, can you tell us what you know that we don’t.
Mal
Getting out of your comfort zone, can help you become comfortable
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