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  • Profile photo of arrowsmitharrowsmith
    Participant
    @arrowsmith
    Join Date: 2006
    Post Count: 4
    October 30, 2006 - 5:41 am

    DLPP,

    At this stage we are looking at a property as a PPOR. I realise this is not the most tax effective thing to do.

    Annual yield? I would estimate the hovel we live in to be worth no more than $450k and that would be mostly land value. We pay $12,500 a year rent, so yield is around 2.7% and the place needs serious work. If we weren’t renting it I don’t know who would.

    I have no experience buying property but I would try and negotiate on asking price if it seemed like the right place.

    Stamp duty here is a major deterrent for me but the lure of a home that is my own (after a while) is strong.

    What is a good source of medium to long range data on house prices?

    How do you justify the cost of renting when you invest in property?

    A) I would lose the 10k first home owners grant

    B) I’de be paying rent plus the difference between my mortgage and rental income. I realise some of this is tax deductable but it is still a loss at the end of the day, or am I wrong?

    There has to be a good reason people get involved in this.

    Profile photo of arrowsmitharrowsmith
    Participant
    @arrowsmith
    Join Date: 2006
    Post Count: 4
    October 30, 2006 - 3:21 am

    Mortgage Hunter,

    I am not interested in high risk style investments.

    As far as other investment options go I have been looking at some 5 star S&P managed funds which are a blend of property, cash and int securites. Even interest rate securites are attractive right now.

    Some of these funds are getting returns approaching 20% (annual) steady over 5 years. Sure you pay tax on the gain but there’s no cost barrier like LMI or stamp duty and you can get on board with as little as 10k.

    Ultimately the IDEA of owning a home is attractive. I would conside a minimal loss as acceptable tradeoff for a home that is enjoyable. As far as I can tell right now it doesn’t look like it would be minimal.

    The way rates are going some cash investments are looking more positive than property.

    I really am a beginnner in all this but have worked in financial services for several years and have an idea about where money can be made.

    Do you have any pearls of wisdom?

    Profile photo of arrowsmitharrowsmith
    Participant
    @arrowsmith
    Join Date: 2006
    Post Count: 4
    October 30, 2006 - 2:49 am

    No not going to buy the place we rent. It is a duplex and it is extremely run down. Ready for the bulldozer I would say.

    What has your experience been with buying property?

Viewing 3 posts - 1 through 3 (of 3 total)