Some comments from more experienced property investors needed as to whetehr the following seems to make sense or whether there is some flaw in my logic:
My idea is to buy a property near cbd on bed near Sydney. 250-350k.
As first time buyer in Sydney I can get get rebate 7k and no stamp duty. I plan to rent out after qualification period of first time buyer grant. I will negatively gear the property for tax breaks. I want a 100% loan. I will have to make up some difference yearly to make up shortfall in rent, but I am happy to spend a bonus I have per year of 8k (before tax). This bonus I say to myself is invested in property.My strategy is future capital gain, period 5-10 years. Simply I am taking a punt on property prices with as much borrowed money as I can not using any of mine except my small bonus. I have money in cash but I do not want to put in property as I want right mix of cash, equities etc (I have property overseas) i.e. asset allocation.
Is this logic flawed? Has anyone else done this.
Your help is appreciated.
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