Forum Replies Created
Thanks to both of you for your comments, i’ll try my best to answer your questions/comments regarding this plan.
The house is in NSW.
The ANZ home loan estimate was only on their website, for an idea of stamp duty costs, etc.. No plan on actually going with ANZ, however thanks for the tip on their lack of revaluing houses!
I would pay for the reno job myself.
Although the house is 300km away, it is actually my home town, so i know the area back to front, and my family have a great property manager who has years of credible work with them, so as far as that is concerned i believe i am covered. I wouldn’t have even considered this venture if none of these things lined up
I do genuinely earn a good income, however only have around $22-25k in deposit, and since the house wont be lived in I will be up for stamp duty + fees etc, so i’m guessing $16-17k deposit, + 6-8k purchasing costs (estimates of course) is basically my available funds at this stage, sure I could service a loan of 7-800k, but this is not an option at this stage.
This property seems to tick all the boxes for what I am looking for, for an entry level, easily manageable IO loan IP.
As far as the structure goes for the purchase, I’ve looked into family trusts etc, however i’m not sure if that is what we want just yet, not to say it’s not for future reference, and i’m aware of stamp duty transfers to change later, etc.
What about tenants in common? Is it possible to have 99-1 ownership, I could pay 100% of the loan, my wife could receive 99% of the income generated? I’ve read the ATO aren’t to concerned about the ownership of the asset, but more what the funds are used for, if i am funding the investment, is this assumption of 99-1 right?
Thanks in advance
Hi Jamie,
Thanks for your comments. I’m sure there will be any number of places available in either Muswellbrook / Singleton and the like which value could be added to, I haven’t really given that much of a thought at this stage. I’m thinking since I will be up that way for at least 2-3 years, perhaps I could find something worthwhile, get my FHOG, do some work, but pay interest only on my loan, since I’m really only living there ‘until’ I move to something else.. As this would be only a step in the portfolio to kick-start things..
I was wondering if anyone had any numbers they could put it, perhaps something like:
Singleton, $350k, FHOG / stamp duty free etc, capital growth, 4-5%? (rough estimates of course)
Elsewhere NSW, no FHOG, etc.. 5.5-6% potentially?I’m sure over the long term, a few thousand saved on FHOG grant now will have no effect on compound growth, but thats why i’m here!
What type of investment structures could an independent mortgage broker offer? I’ve been reading recently how important it is to structure from the start and not to cross-secure properties, etc..
