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You should look at returns from rent in the area you are looking to purchase, at the current prices in QLD seem to have stopped rising and I will suggest that you will research carefully were you invest. You can do a fair bit on the internet, you can find some information about land tax in QLD at http://www.osr.qld.gov.au. Also ask yourself why QLD? Did you know that now for similar ongoing expenses you can have an apartment in Sydney?
So first decide what drives you to invest in QLD then you will need to find the right area check the council plans for the future as for infostructure and community development, what type of tenant you going to have? How much does he going to be able to pay? How much a money you can borrow at the chosen area? How much does it going to cost to hold this property? Who is going to manage your property? How much does he charge? …..and more. You should analyse your position in details as if you open a business and this is your plan…and you should take into consideration the tax implication.
Should you require assistant as for how to structure your finance or/and how to analyse your proposed IP, please email me using this forum.Regards,
ES
Disclaimer: this information should not be taken as advice. You can use the above at your own risk no guaranties given by the author. You should seek appropriate guides and conduct your own research.
I must say I agree with ‘Qlds007’ I do not think that your analysis is complete. Depreciation is a very important component to look at when purchasing IP. There are varieties of loan products that probably better serve your purpose of building equity faster and turning your property into neutrally geared. Now days the banks competing within themselves to get a bigger share of the market and offering 0.7%-0.8% off the current STD rate, reducing your interest repayment can change your position faster.
Need more information or personal analysis, just email me via this forum.Regards,
ES
If you have a stable job and can service the loan you can borrow 106% using the property you about to buy without affecting your other IP. The idea to use a 100% offset account is very good. If you have a saving program you share it with the TAX man but if you offset your mortgage you effectively saving at the full rate of your mortgage!! Drop me an email using this forum if you interested to know were and how to get the full money amount (106%) which will cover all your costs and you can keep your 10K.
Regards,
ES
If you have a stable job you can borrow 106% using the property you about to buy without affecting your other IP. The idea to use an 100% offset account is very good. If you have a saving program you share it with the TAX man but if you offset your mortgage you effectively saving at the full rate of your mortgage!! Drop me an email using this forum if you interested to know were and how to get the full money amount (106%) which will cover all your costs and you can keep your 10K.
Regards
ES
All true, however there are some lenders that hold a better view for the inner city and willing to lend generously even for units bellow 50m. As for your gearing this is something you will need to work out. Usually you would want to have a newer property anyway to be able to depreciate more of the value and increase your cash flow to better support your investment and ease the burden on yourself. There are ways to work out all the figures and then to make an educated decision, do not take it lightly, conduct your own research.
Regards,
ES
Have you got your own property?? If you do there are lenders that will look at your case and make the payments affordable. By using your friend easy money you will get yourself back at the ditch real quick! You should be responsible for your own affair!
There are few solutions for your challenge but you need to understand the implication of each one. The loan structure should be determined after you choose the way you want to go about the property (you might want to chat to your accountant), one of the things that you need to understand is if you use part of your home for investment purposes and claim the interest you will need to declare the income as well, in addition to that when you sell the property you will be exposed to CGT on the portion you claimed, so depending on what exactly you wish to do, we can work out a solution that will best suite you. If you wish to discuss it further you can call me direct on 0438 985 708.
There are several things that you can do. It seems that you have enough equity to invest and high income of which you pay a fair share of tax with it. You should look at tax effective way to invest, one of the way is property investment, if done right at your level of income it should not cost you out of pocket more then $150-$200 (if that) per week, looking at the current market in Australia and the recent change of exit tax in NSW, it seem that Sydney going to grow again and maintain historical growth. With the time frame you have provided you may achieve a great capital growth. There are many other options available, if you wish to discuses it further and get a better understanding please contact me on 02 8215 0652 or 0438 985 708.
*The information above based on minimal information that you have provided and should not be taken as advice!
As you on a higher tax bracket you should look at changing the ratio of ownership it may cost you the stamp duty again but calculate your benefit on the long run if there is any, with your loan IO is usually the best option however there are ways of minimizing your liability without loosing the accessibility to your funds. If you like to discuss some option you can give me a call on 0438 985 708
As an investor, your mortgage should be allowing you to increase your equity. This would be the most Tax effective way for you to accumulate funds for your next property. If your mortgage setup right, you will be able to utilize your cash-flow instead of increasing your payments.
YES you can borrow 100%, you can even borrow 106% if you can service it. It will go toward purchasing costs such as stamp duty, mortgage insurance legal etc. So basically you DO NOT use your money!! Allan, I can arrange for that type of finance, just reply to my message.
