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i think you are better putting your money in a buy to let property in UK. My flat in Cenbtral london increased in value 4% in month of April. 11 years straight growth in London property market. I am a POM too, looking to invest in property market to take advantage of no transaction cost as first time buyer, the market here is stagnant and maybe no growth for yaers or so, depends how you wan to make cash in short term, but I think unless you get reno add value etc if you want capital growth forget sydney. It is not yet a truly internaltional city.
I have looked into this..make sure for the first six months you have phone, utilities, car registration at this property.
Persian Kitten,
1) My point concerning property prices double every 7 years is simply that past perfromance is no indication to future performance. I think we should just not take this for granted. In 7 years their will be some growth cycle we can realise some gain, but is it double who knows.
2) I have a apt in London and land on Greek Islands. I am trying to buy in Sydney CBD right now.
However, where I would buy property if I my circumumstances were different and i had some equity i need to spend for capital gains is a) Moscow (soon to be one of the worlds most expensive cities) b) Riga (the current worlds property hotspot) and b) Slovenia c) Berlin is really undervalued.
Sydney CBD is for me right now. In Australia you will wake up like the rest of the world, the closer to the centre of the city, the greater the value of the property..i still belive the cbd is undervalued internationally…the trend will be for younger skilled people moving to sydney looking for work, this will be some growing segment of the market i believe…
3)
Australia will soon be a donught after Rio and BHP drill the centre out, once its all gone or chinese people have enough cities Perth will be a ghost town, like Seattle in the 80s.
The only nearly world class city in Australia is Sydney, prices in the center of the city are still low compared to real world class cities London, NYC etc. I believe buying close the the CBD long term you will see great capital growth as Sydney becomes a truly international city within next 10 years.
Anyway, time is forgiving, if you own a property in Sydney over 10 years, you will hit some cycle peak and make money…dont believe doubling every 7 years
Alternatively if you can’t wait a few years that long then forget the Aussie market it rubbish, prices in Riga doubling yearly, look at ascession countries to EU, this is where the smart money is going. Entry level is low.
Just my 10 euros worth
Thanks. that reply was relaly helpful. It is true, I ahev been looking at this from one angle.
Snap! I am looking Potts Point and Wollom…Elizabeth Bay is better I agree, but a little more expensive and more established. I am thinking more for capital growth, long term as I certainly will be negatively geared, so better to be slightly less established, next to established.
My comment is studios less resale value than 1 beds. Anyway, rentals demand strong around Potts points for young workers.
I am looking to buy my first investment property in sydney as well. I am looking at a one bed walking dist to cbd. I think one beds are a good option..you can pretty much always rent them for younger workers. I would not bother with a studio..resale value less. You have a target market for resale as well.
Thanks. I think I understand. I have acouple of questions:
1) Is the tax break only against interest on my loan. If I have interest + capital loan in the case above, i.e. the 2000 mortgage payment i need to make monthly i cannot claim 30 % of the total 2600 as some is capital repayment part of the loan.
2) Can someone check my numbers for the cast the property is rented every month (maybe not truly realistic, but i am thinking of flat close to sydney cbd).
-My loss per year is 1300 x 12=15600
-30% tax break on 15600=4680+depreciation 6=10680
-therefore i have to find 1560-10680=approx 5k per year of my own money.3) I have one question on your example, if i earn 100k, my tax is 25k in your example, but my tax rate is 30% i.e. 30 % is what i get back from my tax
thanks.
