Hi Guys,
Just thought I would throw this one out there. Where I currently live, my employer pays 75% of my rent as an incentive which saves me $7800 a year. I have researched the town and to me everything stacks up to make investing in a property here well worthwhile. The problem is, if I buy a house within 75 km of the township for investment or ownership I then lose my rental assistance. House prices range between $80 000 -$300 000 and average rent is $200/week.
Would anyone see it as worthwhile foregoing their rental assistance rental assistance to invest? I can invest in other areas but I am a fair way from anywhere for that to be an easy option.
Thanks,
Ian [
]Ian, can you invest in another entity – say a family trust? I don’t know if I would be too keen to forgo that sort of a benefit – especially as the CG is not as rampant as it has been, and you would have to find that and more money to pay for all the costs etc.
Cheers
MelHi Mel,
I’m not to keen to give up the assistance myself, but I thought I would see what the opinion of others would be, and if there were any unique ideas.
Thanks,
Ian
Ian
It seems too good to give up. What about investing in other areas.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Ambo72,
I’m in the same situation here in Sydney. I am on subsidised rent until August 04, and believe me you need it here. Also part of my deal is that I will be reimbursed stamp duty, legals on purchase so I would be mad not to purchase. I have another 3 years before this option expires. I posted the same question a month or so ago regarding buying or renting. What I intend to do is selectively buy some more IP’s, some LO’s and commercial property. When my subsidised rent runs out in August I will pay the nominal rent. Considering the yield here that investors get it’s laughable buying at this time, I believe the market will soften/fall, then I will purchase using the cash positive funds from the IP’s to service the home I wish to retire in here in Sydney.
Spider
Pay now play later
Actually spider, you have just reminded me that if I do purchase property here, my employer subsidises the cost such as stamp duty etc.like yourself. Will have to look into it.
can you put it in the name of wife or partners name?
Which state?
BC
BC,
I had thought about that. So you mean I would rent off her and still be able to claim assistance. Could be a loophole there.
We are in QLD
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