Own Vs Renting

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kay henry
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@kay-henry
Join Date: 2003
Post Count: 2,737
June 15, 2004 - 4:43 am
Oops G7- I think I read your amount of posts as your age! (In which case, I would be as old as Methuseleh). And G7- now that I know you’re so young, you have many many options I hope you can one day afford your own home too
Bbruham… [blink] you need some sleep!! I may one day own a home, bbruham- thanks for your thoughts [hair2]
kay henry
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
June 15, 2004 - 4:57 am
Originally posted by AusProp:
I’ll need to get hold of the legislation and read it as it coud be an interesting strategy.
Hi John
Look at Sect 118-145 of the ITAA.
Also see TD 51 and TD 95/9.
Terryw
Discover Home Loans
North Sydney
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melbear
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@melbear
Join Date: 2003
Post Count: 2,429
June 22, 2004 - 6:30 am
G7, I would look at buying a house as an IP, but perhaps paying P&I and paying as much as you can as quickly as you can – at least for a couple of years…. This way it’s as if you owned it, but you are also getting some benefits of being an investor (any tax returns chuck them into the loan too).
This way you’ll be able to build up some equity, which is not dependent on growth in the market. then continue to buy IPs (or buy yourself a house to live in – your choice). Really depends if you will like living where you can afford to buy…
Cheers
Mel
ScaryMary64
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@scarymary64
Join Date: 2004
Post Count: 5
June 22, 2004 - 1:17 pm
When My fiance & I bought an IP we had $50K between us as deposit.
We really wanted a house to live in but even back in 1997 in the Sydney market we were looking at $400K for what we really wanted.
So we bought a small 2BR-SLUG IP for $215K and continued to rent a 3BR-DLUG townhouse that was big enough for us and the impending kid.
When we sold the IP only 2 yrs later we had an extra $40K for our deposit (after tax etc.).
There is no way we could have saved the extra $40K so fast by slugging away at work and tightening the belt.
We now have a nice big comfortable house – in Sydney, with about 50% equity, along with a mortgate that seems like it will never get paid off – but hey, that’s why I’m snooping around here, looking for some good oil.
Scary.