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  • Profile photo of 2morroW2morroW
    Participant
    @2morrow
    Join Date: 2011
    Post Count: 5
    July 5, 2011 - 11:28 pm

    Thanks for the comments- I really wish I knew more people like you guys to bounce these ideas off.   I am very wary of not making emotional choices when it comes to property but must admit it gets hard when you start to look around. 
    Bjsaust-to answer your question about my motivation.  I think the goal is to get to retirement age (i am 30 now) with a couple of properties bringing in a passive income that I can rely on.  In other words I am happy to negatively gear something and let it pay for itself and then a few years later get a second property.  I suppose I would love to invest in an area that has growth but also happy just to have something that is easily rentable.

    It does get tricky once you start to look around the area you love and see great property but I am really trying to stay focussed and starting to look in the western corridor and Geelong (West Geelong, Highton, Belmont, East Geelong).  Also looking closer to home in West Footscray which still seems to have some decent prices.   

    I do have a friend who has three properties in East Geelong and they are never vacant and he has had them for a long time- so I guess that s a good sign.

    Anyway I am going to continue to go to auctions in my neighbourhood but also look further afield.

    The longer I wait the more deposit I save so I guess thats a good thing.  But then I tend to think the longer I wait the more property goes up…AAArrgh

    Anyway, I will continue my hunt and keep you posted!

    Profile photo of 2morroW2morroW
    Participant
    @2morrow
    Join Date: 2011
    Post Count: 5
    April 1, 2011 - 2:22 am

    Thanks, I’m thinking the same thing :)

    I guess I will have to start looking and doing the math!

    Profile photo of 2morroW2morroW
    Participant
    @2morrow
    Join Date: 2011
    Post Count: 5
    April 1, 2011 - 1:52 am
    Mr5o1 wrote:
    If your careful.. it could be a very effective approach, tax wise.

    However, you'd have to "move in" (think furniture, utilities, mail, etc) for the first 6 months. This would give you 2 advantages:
    1- you'd be eligible for the $7000 FHOG – which will go a long way towards the rent that your not getting, and
    2- thereafter you can extend the principle place of residence exemption for capital gains tax for 6 years,

    Then, whilst the property is rented it will be negative geared, so the taxman and your tenant will help you pay off the house.

    Thanks for the above answer. I am trying to approach getting into the property market with a fair amount of caution since I don’t want to become an absolute slave to the bank as much as possible :)

    I think I am about a year off buying something as I want to have at least 20% deposit. I am going to be looking into your above comments as they sound pretty positive.

    A second question I have is about where to buy. I’m not really fussed and don’t want to make an emotional purchase. I’ve been thinking that Geelong is good option but wonder if any other areas around Melbourne have growth potential over the next 10 years or so? I am looking to spend no more than 350,000 max but would prefer around 300,000 or less.

    Any suggestions?

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