Hello all, i’m looking to expand my portfolio and need some suggestions as to how to do it and resources to look at! i currently own my own home and my wife owns hers. mine is realestate valued at $400000.00 and hers at around $500000.00. the only major debt we have is $129000.00 for our charter boat! we would lke to be able to buy one if not two more properties in the Macaky region as the mining industry has made it a bit of a boom town for rentals! the expected life of the mines is around 15 years from when they commence!
i’m not real sure whether we should negative or positive gear in our situation?we currently run a furniture & homeware import shop and a charter boat and we need to move closer to town. so do we buy a property in town or rent our two out and rent in town? sorry for the long blurb but i’m in a real hole at the moment about this situation.
thanks.Adam Homes
It depends what you want to do long term. If you never intend to return to your home, it may be better to sell. Otherwise you will be paying rent with after tax dollars and then be paying tax on the rental income.
Terryw
Discover Home Loans
Mortgage Broker
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
Work out what my goals/desires are for you and your wife.
Then implement the strategies that will enable you to reach your goals in the fastest possible way.
Take the path of least resistance!
Learn, Love, Strive. Make a difference!
Selling and buying again always costs a lot of money. So if you choose to do that, then you need to look at the long term result and work out if the long term savings is going to offset the short term costs.
It might also depend how much you can rent your existing properties for, and how much rent you will be paying to live somewhere else. You may find that the income is more than the expense.
Andrew
http://www.rentmaster.co.nz
Software for LandlordsRegarding your question as to whether to negative or positive gear, I would say positive. I do not see many valid reasons excluding seeking capital growth to use for further purchases or balancing a portfolio.
The more tax you pay, the more you earn!
Robert Bou-Hamdan
Mortgage AdviserThanks everyone, will investigate further!
adamAdam Homes
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