Hi All,
Im Stuart from the ACT.Myself and partner own a townhouse that has a light rail stop been build out the front and will be a great investment property moving forward. We also need more space.
We payed 440000 for it and have found out it has appreciated at least 60 to 80,000 and we have payed 20,000 in the offset account of the interest only loan.
We have found a house that we like for a long term family house for around 700,000.
On moving in to the new place the loan still owed would be around 340,000 on the town house.Or plan was to convert it into a investment property of which we think 5 – 520 / week would be a fair rent. We were wondering what the best way to move forward would be. And finally start my property investing dream.
We were worried that we will be priced out of the canberra market very shortly if we dont move soon as it is very hard right now to get a 4 bed home under 700,000.Cheers Stuart
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This topic was modified 6 years, 10 months ago by
Stuart. Reason: Forgot key info
Suggest you start with a good mortgage broker to see whether this is feasible. Give them as much information as possible.
Think outside the box. May be you might be better to buy and lease out for a year. i understand stamp duty on conveyancing in the ACT is tax deductible on IPs because it is actually transferring the lease.
Or plan was to convert it into a investment property of which we think 5 – 520 / week would be a fair rent. We were wondering what the best way to move forward would be. And finally start my property investing dream.
Hi Stuart
Which suburb is the property in? I have one in Downer that’s near a future light rail stop. The recent growth in the area has been quite good!
Whether another purchase is doable depends on your borrowing capacity. On the surface – it looks like you have enough equity to support a second purchase so it will just come down to your income/liability/expenses situation.
All in all – another purchase might be doable. You just need to a) find a decent broker to run the numbers for you and b) structure your loans correctly.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Stuart, congratulations on picking the right investment and getting some great capital growth returns. My only concern would be your leverage and overall equity position with 2 properties to service. The other issue might be that your principal residence will be taking the brunt of your mortgage repayment without any tax deductible benefits. Have you considered ‘rent vesting’? Ultimately its about your overall returns and equity position.
Tim Mardiyants, MBA, DipProperty (Agency Mngt) | BLOCK Real Estate - Canberra
http://www.blockrealestate.com.au
Email MeSales. Property Management. Buyers Agent.
Hi Stuart,
1) Talk to lenders and inform them that the townhouse will become your investment property hence the max loan amount should be on that.
2) Once you purchase the house, contact certified property valuer and get the townhouse valued as this will be your purchase price, & will help you calculate CGT if you decide to sell the unit in future.
3) Get depression sechedule made so that you can reduce tax.Hi Stuart,
1) Talk to lenders and inform them that the townhouse will become your investment property hence the max loan amount should be on that.
2) Once you purchase the house, contact certified property valuer and get the townhouse valued as this will be your purchase price, & will help you calculate CGT if you decide to sell the unit in future.
3) Get depression sechedule made so that you can reduce tax.Hi Arvid
1. why?
2. this will be the cost base, but it could still be CGT exempt.
3. Depreciation of fixtures and fittings won’t be available because the house is not new. Only building works could be claimed.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
3. Depreciation of fixtures and fittings won’t be available because the house is not new. Only building works could be claimed.
It could still be lucrative, though. Have I missed above anywhere where it says how old the building is? Deductions from depreciation could still be in the thousands p.a. for quite some time.
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This reply was modified 6 years, 4 months ago by Chris.
Chris | BMT Tax Depreciation
https://www.bmtqs.com.au/
Email Me | Phone MeMaximise the cash return on your investment property
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This topic was modified 6 years, 10 months ago by
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