Hi,
I wanted some advice on property investment.I work for the Defence(earn approx 55k) and receive a rental assistance of $150/week.(Meaning I can afford to rent a $300/week property and pay only $150 for that) I am looking at buying a property and renting it out… Now what is the best strategy… 1) Hire an Financial Planner or property advisor? 2) These books such as the ones written by Steve McKnight, are they worth their price? 3) Buy a run down property renovate it(or may be just buy a property) and lease it for positive cash flows or negatively gear it?
Regards,
Gaurav[
]1. Steve’s and similar books are priceless. If you get one idea that will save you the cost, by informing you on something that could have cost you, its worth the investment.
2. You have to work out your goals and aims. If you want passive income (and not continue to work for $$$) then WRAPS or Lease/Options my be the way to go. However if you don’t mind putting in the hours then a reno might be enjoyable. It simply depends on your goals/free time etc.
Its a thing only you can work out – unfortunately
Steve book, has a few chapters dealing with this point exactly, worth the read, to help you get some clarity.
Pete
…Beware of the dreamtakers…
beware of buying reno and then losing your rental assistance allowance. I understand Defence cannot own investment property in same area they are working in without losing allowance. You would need to be near your reno to oversee work.
Read a couple of books to give you some ideas – well worth the time and small amount of money you will spend.Hi,
Colstu has a point about purchasing a property (IP or not) in you posting locality. If you purchase a property within 35km (I think that’s right) of your base then you are expected to live in it. That is, if you are entitled to a 3 bedroom house and you purchase a 3 or 4 bedroom property in locality, then you are expected to live in it or otherwise you loose your rental assistance……unless it is below your housing entitlement. Example: If you purchased a 2 bedroom unit or townhouse or something similar….that would be below your entitlement and therefore you would not be expected to live in it and can still gain rental assistance.
Cheers
Hey Thanx a lot…thats a brilliant idea…..me n my husband never thought of that….that was a God sent message!Very sweet of you…..bye…Mona and Gaurav
Hi,Colstu has a point about purchasing a property (IP or not) in you posting locality. If you purchase a property within 35km (I think that’s right) of your base then you are expected to live in it. That is, if you are entitled to a 3 bedroom house and you purchase a 3 or 4 bedroom property in locality, then you are expected to live in it or otherwise you loose your rental assistance……unless it is below your housing entitlement. Example: If you purchased a 2 bedroom unit or townhouse or something similar….that would be below your entitlement and therefore you would not be expected to live in it and can still gain rental assistance.
Cheers
Thanks a lot…these points are definitely for consideration….we have bought a book by Jan Sommers…..on your advice…..cheers…….Mona & Gaurav
1. Steve’s and similar books are priceless. If you get one idea that will save you the cost, by informing you on something that could have cost you, its worth the investment.2. You have to work out your goals and aims. If you want passive income (and not continue to work for $$$) then WRAPS or Lease/Options my be the way to go. However if you don’t mind putting in the hours then a reno might be enjoyable. It simply depends on your goals/free time etc.
Its a thing only you can work out – unfortunately
Steve book, has a few chapters dealing with this point exactly, worth the read, to help you get some clarity.
Pete
…Beware of the dreamtakers…
Thanx thats a valid point….yes we checked on that …and that how it is with the defence…you have to be outside 30km radius…..we will have to rethink reno…..have a great day and thanks again for your time…..cheers…mona n Gaurav
beware of buying reno and then losing your rental assistance allowance. I understand Defence cannot own investment property in same area they are working in without losing allowance. You would need to be near your reno to oversee work.
Read a couple of books to give you some ideas – well worth the time and small amount of money you will spend.Hi Gaurav,
I’m in Defence aswell(RAAF) and have had to sort out similar problems. The advice given so far is all good. I will just add one thing though. Take advantage of the fact that your receiving rent assistance. I live in Canberra and if I had to pay the REAL rate of rent in this City I could never afford to buy IP’s.[
]I personally am not buying in the area I live in because of the rules regarding rental assistance. I would avoid the renovation/flip strategy unless you have a lot of experience and hands on.
Good luck.You will always miss 100% of the shots you don’t take!
Hi Ronulas,
Thanks for the advice mate. I agree with you. But we will still have to check with DHA…
Regards,
Gaurav
hi ,we are new to investment buying also, we have had our 1st property for 12mths now, its been in negitive rent the whole time, do you think its best to sell, or buy another to maybe cover all costs.
Hi Gaurav,
I too am an AJ.
Other things to consider:
1. If you buy a reno, arrange to take leave to get stuck into the work or to supervise at different stages of the reno, if you can’t afford a lot of time off. Flights these days are very cheap.
2. If you buy an IP as your first property you will loose all your rights to the Defence Housing Purchase Scheme aswell as FHOG. (I know, my first three properties were IPs).
Hope this gives you some food for thought.
Rae [8D]
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