All Topics / Help Needed! / property advice

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  • Profile photo of enc84enc84
    Member
    @enc84
    Join Date: 2013
    Post Count: 1
    November 17, 2013 - 9:20 am

    Hi community,

    Im new to this forum and was looking at getting some advice on buying my first property and investment property.

    My question is if you had 500k to spend how would you spend it?

    im looking at a house to live in and investment property maybe a few, im looking for some advice on whats the best way to go about it?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    November 17, 2013 - 9:43 am

    Pay cash for the house and then borrow against it to buy the IP.

    Also consider asset protection strategy or 2.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416
    November 17, 2013 - 12:50 pm

    Hi enc,

       Welcome !!  Sounds like you are in a good place with a chunk of change to use…..  smiley  I'm sure the possibilities are vast, but if you share a little more about yourself, responses might be able to be tailored more toward your preferences.

      e.g.  What age group are you in?   Do you want to limit your purchases to the city/region you are from, or not?   An idea of your income, or perhaps just your "disposable income" – maybe you could buy 3 (???)    Your risk preferences – you sound like you might be younger, so may be prepared to take on more risk than an older person with dependents.   Are you considering shares too (as part of a holistic plan, if it helps to make the Property investing work), etc.

      Of course, there may be things you won't wish to share publicly, and that's OK too.   Share how much you are comfortable with sharing, and let's see what turns up. 

    Benny

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    November 17, 2013 - 3:25 pm

    Sorry Bought with Equity but that is certainly not a sounds investment strategy.

    Why would you pay cash for a property that you intended to rent out and then and go and borrow again to buy again for a new PPOR.

    The interest would not be deductible on property 2 as it was for a PPOR and yet you would taxed on the rental income being received from property 1.

    I appreciate you are here for one reason and one reason only and that is to try and flog your USA investments but please ensure that any comment made is practical to the situation.

    Ill conceived strategies will prove very expensive for the forum member who lives in Australia if the strategy and structure is incorrect.

    Enc,

    If you think you will live in the first PPOR for some year then by all means look to pay cash for the property and gear against for deposit on other properties however if you think that you will possibly rent the property in the near future and haven't decided on an IP yet then look at borrowing 100% of the purchase price and using a Term Deposit as collateral security.

    This maximises potential interest deductions whilst in the meantime keeping your cash funds liquid.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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