All Topics / Help Needed! / Advice Needed!!!

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of moodamooda
    Member
    @mooda
    Join Date: 2003
    Post Count: 12

    Hey Guys,

    I have a close friend who has about $40,000 saved, and who earns $125,000 a year. She works on the Gold Coast and works long hours.

    She wants to invest in something but simply doesn’t have the time or inclination to look for the right deal.

    I have tried to convince her not to buy a neg. geared property, but if she doesn’t have time to look around, what are her options. She has been sitting around for ages now and is getting anxious that she should be putting her money to good use.

    Obviously she has good borrowing potential… what do you guys suggest?

    Thanks so much,

    Mooda.

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Does she have a home?

    Simon Macks
    Mortgage Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of moodamooda
    Member
    @mooda
    Join Date: 2003
    Post Count: 12

    No, added to her package is a 2 brm apartment and a car.

    She works for a developer up there, and he was doing a big project last year. She was going to buy one of the apartments off the plan on a big staff discount, but he sold off the land before completion of the project, so she has been left in limbo.

    Thanks,

    Mooda

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    Mooda, your friend could do quite well with a negatively geared property. With such a high income, some tax benefits would do wonders for her disposable income. I hope she doesn’t spend it all – although she mustn’t if she’s saved up that much.

    If she does want to buy a neg geared one, make sure it’s a relatively new one so she can claim the depreciation. She could probably afford quite a few on her salary before the tax benefits stop being so good (I’m jealous![;)])

    Cheers
    Mel

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Mel was echoing my thoughts.

    Neg geared by itself isn’t the goal. The goal is to find a property with above average growth potential. The tax refund is just the icing on the cake.

    Noone invests to lose money alone!

    cheers,

    Simon Macks
    Mortgage Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of yackyack
    Member
    @yack
    Join Date: 2003
    Post Count: 1,206

    Hi

    I totally agree with mortgage hunter. I would focus on a house or a few houses in growth areas.

    Land is what appreciates. I look forward to tax time to get my tax refund. I have some properties that were negative geared and one that currently is. The tax refund is like an enforced savings and I look forward to doing my tax.

    With an income of $125k and only assets of $40k, thats the problem with many people. They spend all their time focused on work, and not trying to understand investing. An income like that should be financing growth assets. You could almost buy about $600k worth of assets on that.

    Cheers

    Andrew

    Profile photo of annaw2annaw2
    Participant
    @annaw2
    Join Date: 2003
    Post Count: 178

    Bit of a late reply, but maybe she could look at the listings on http://www.onsitedirect on the Gold Coast if she wants to purchase and doesn’t have the time as you said. We recently sold a property through them, having been referred by our onsite manager and found them fast, efficient and professional.

    Anna

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