i’m a single dad of 3 kids. I earn about $70k as a standard salary earner, and pay $250 per week to rent in sydney. I have $20k in the bank.
1) is this enough to start investing in property in this climate?
and
2) can i claim any of my rent back as a tax deduction ( i heard somewhere you can as its not your primary residence…really not sure though)many thanks!
ije$25k is the recommendation I suggest as for $100k property you need $20k for deposit and $5k for costs. Not too many under that these days so yeah, not too far to go.
Stay renting. To own the same house would be about $500/wk probably so stay put. The difference can then be allocated to servicability of IP loan which is 100% tax deductable for interest.
Not sure where you got that your rent would be a tax deduction. Never heard that.
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!hi ije,
it really depends on where you want to invest. you will definitely need more than $20k to invest in sydney, unless you look at older style apartments in sydney’s west????
as far as deductibility of your rent payment, unless you run a business from there (you say you’re a salary earner) your rent payments are definitely not deductible.
eric
Hi Ije,
I agree with the others that you should continue renting for now. If I was in your shoes then I would definitely be buying an IP not buying a home for yourself. On your wage with 3 children, you’re probably getting rental assistance, which disappears when you own your own home. Your rental income may then help to reduce your tax. You should also check with Centrelink because in my case the rental income was not taken into account when calculating the Family payment.
Landt.Hi ije
first of all congratulations on making the descision to take control of your financial future, and that of your children. Attitude counts for 80% when it comes to investing and skill counts for 20%. So keep reading and learning all you can. I definately agree with continuing to rent for the moment. As well as saving some more of a deposit to help you buy your first ip, you may also want to consider things like joint ventures, mezzanine finance and small commercial syndications, to get you started.all the best
Xenia
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