Hi All
We are trying to think out of the box on this on. Basically we have 100k in savings and are looking to buy our first home. We are considering whether we use the money to invest or to drop it as a deposit on our own home.
We are looking at a mortgage of about 500K if we buy a home (Sydney area) but we also know we wont be in a position where we have 100k to invest in something again anytime soon.
Oh and we have about 90k equity in our only investment property if that helps.
Would love to hear any suggestions on what you would do in the same situation
If you buy t live in you will get a CGT free asset, maybe the stamp duty exemption and FHOG too. You will have an asset which will be growing in value. If you invest you will also have an asset growing in value though.
The major different is the monthly cashflow. If you rent what will the rent be like in comparision to the repayments on buying? How much cheaper would it be to rent?
Also remember rent tends to go up every 6 to 12 months and you will have the added hassle of not being in your own property so cannot do improvements, do the garden up etc and could get kicked out when the lease expires.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
The dilemma of whether to live in a property I own, or rent something else is something I've been pondering lately. I've come to the conclusion that there are too many things in life I enjoy (eg being on holidays every weekend, and a long overseas trip each year) to have the nuisance of a landlord announcing at an inopportune time that I need to vacate. As a result, due to my lifestyle, I'll probably decide to live in one of my properties. If you can absorb the nuisance of having to move sometimes, there might be more money in it for you not to reside in a property you own…
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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