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Sorry, I forgot to write.
Why does it seem that houses in Ballarat are cheaper than in Bendigo?
Hello everyone thank you for your answers, they have been of much help!
Wayland
Victoria.
Okay, here is my initial ultimate goal:
I want $100k a year in rental income.
Ultimately, I don't want to pay a lot of land tax so I was considering a strategy that I heard in a recorded interview on the Reno Kings website.
Rather than buy lots and lots of properties, I want to buy a few and put more houses/units on them so that they are earning more rent so that my land tax
isn't increased with every new rental income source I have. So I am looking to buy properties that have development potential.
But to get the ball rolling, I wanted to buy some entry level properties where the repayments weren't so high and where I could pay off the loan quickly and
gain a higher income (I am vaguely aware that this will increase my taxable income – I haven't researched that area in great detail yet) but with the higher income
I could then start buying blocks of land with houses on them that were suitable for development by either adding another dwelling(s) on the back and would
be able to use the rental income that I was receiving from the properties I initially bought and then sold their backyards to help pay off the loans and to allow me to comfortable afford them. Also, I am (again vaguely) aware that with new houses on the back of the property (that have been subdivided) would give me some depreciation to help
offset the extra income I was getting from rental properties.
What kind of structure is ideal in this case? Also, if you can give me any cons you can see in this strategy, I would be happy to know.
Wayland
Hello Jamie,
Thanks for the quick reply. Sorry I didn't mean in a house and land package, I just meant a block of land with a house on it.
So, technically I could do this if the land was able to be subdivided? How would it work out with the loan? Would it change anything in terms of LVI?
Are there any big cons with this idea?
My reason for asking is because I want to pay off one or two houses fast so that I would be getting rental income to help pay off the next houses faster.
Wayland
