Hi All,
As this is my first post, i would first like to say a big thank you to all those of have contributed and put time and effort into this board. I feel very lucky to have found such a great resource!
I have recently inherited about 50k and would like to invest this as smartly as possible. I was wondering if any of you could kindly provide some suggestions on which way to go!!
A brief profile of myself:
I live and work in Byron Bay NSW, earning about 36k per year, I am 32, with no debts. I have never bought a property before so as far as i know i am entitled to the FHOGI am committed to this area as i love my job here, and would need to live within 30 minutes drive to work.
Here is my dilema, do i make use of the FHOG and buy something local but maybe not the smartest place to invest at the moment, or…. do i forgo the grant and look into finding a CF+ somewhere else?
I have been living on the NSW north coast for about 10 years and it seems that the property values have hit the roof a bit and levelled out. So i would be more interested in looking for area of higher growth and more affordable for my price range.
Should i look into trying to split the 50k and use it for two seperate properties (if i can afford it!)?
And the million dollar question: Would i be wiser to look for a property with neutral CF but higher CG, or possible lower CG but better CF+????
I have been busy reading many threads here, and if theres one thing i have concluded is there is no “one” solution (which is exciting!) I am more than happy to do the research into finding CF+ IP…i can see they are there to be found, with a little initiative.
I guess what i am hoping for is some thoughts and advice on getting started.
Looking forward to hearing from you
Patrick
Hi Patrick
What sort of prices ranges are the properties up there?
You may be better off buying a property, getting the grant, living in it for 6months and then renting it out, claiming the deductions – tho you are on a low income so the tax savings would be limited.
You could still claim the property as your main residence and avoid CGT for up to 6 years.
Terryw
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Patrick,
I’m no expert by any means but I do know for sure that you do not have to forgo the FHOG to buy investment property. If you buy a property purely for investment and never live in it, you cannot claim FHOG on it, but you can still claim the grant when you later buy a house to live in. This is what I am doing – I rang the office that administers the grant to confirm.
As for CG vs CF, you’ll get a different answer from every person you ask. Read through the forum and you’ll get lots of viewpoints to construct your own strategy from.
Hope that helped and good luck! [suave2]
ClareHi Clare,
Very interesting… What state are you in ? I would like to check the FHOG criteria you mentioned because it could benefit a friend of mine in a similar situation. [blink]
Todd Burns
http://www.freepropertyhelp.com.auSorry Patrick I got off track on the previous post. I wanted to give my suggestion for your situation….
I would use as little of my own money as possible and buy where I can get a good rent return to get enough money so that my IP is not a financial drain on me Obviously it still needs to be a place where capital gain is likely.
I would not be locked in to my hometown or by the FHOG criteria because this could work out being a very big drain on finances even considering the other advantages you get.
I suggest you work out a couple of different scenarios and see which one you think you could best cope with.
All of this really depends on what you are wanting to achieve long term. If you only want to own 1x IP or a house to live in, then your strategy would need to be very different to what it would be for accumulating a multi-property portfolio.
Todd Burns
http://www.freepropertyhelp.com.auHey Patrick,
Are you married or single?
If I was single and in your position, I would look at a local property that fits the following critera:
– Subdividable or potential for future development
– Heaps of space (ability to setup many rooms)
– Renovation potential to add immediate valueI would then investigate the concept of buying a PPOR, moving in and having a bunch of students living with me to pay the place off…
As I said – don’t know your situation, and don’t take this as advice, but that’s one option I would investigate.
Regards
QL [thumbsupanim]
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