All Topics / Help Needed! / High Income
What does everyone class as a high income?
If i can pay off a loan very quickly with a high income, would i be better to get a few loans for a few properties and disperse my money more to make the loans meet the minimum repayments. (assuming they are not +CF. Then it is negative geared and that comes off my big tax bill anyway so that would be a good move??
Thoughts?what is your goal. Do you wish to create cash flow or capital growth.
Will the property increase enough over time to pay you back for the outgoing money. Have you thought about paying off a couple of properties to a point where income – expenses =cash flow positive situation so they do not cost you any money.
How many properties can you buy with positive cash flow as compared with negative geared properties. How many can you hold ont o if you lost your job in the future.
You need to look at your end goal rather than just a tax saving.Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I agree with duckster.
I think the average wage according to the govt is about $50K per year? I think this is a bit optimistic myself – there are many more people on low incomes than high incomes, and the fewer high incomes pump up the average I suspect. One CEO is worth about 200 check-out persons at Safeway.
So, based on those figures, anything above say, $60k would be considered ‘high income’ I suppose.
It may also be a good idea, if you have a high income, to save enough deposit to put down to make the property cashflow+ or positively geared from day one.
The problem may be though that the prop values will increase faster than you can save.
Although, for the short term I don’t think that will be an issue.
Either way you go, you are in a good situation as you can accelerate your investing with your income.
Personally, I don’t think it is a good reason to buy property to simply lower your tax bill. This should be the ‘icing on the cake’.Cheers,
Marc.
[email protected]ok i understand, pay the depoist as the amount which tilts it to +CF and then i dont have to worry about it. Until it is paid off and funding my retirement. sweet.
A few tips. The most important thing to focus on , is to pay down non deductible debts first. eg. principal place of residence, car loan , personl loans , credit cards (should target highest cost and interest rate first,). Any excess funds arrange an offset account, to minimise interest costs , but still have the flexibity of utllising your funds
Wholesale Property Brokers
http://www.wpb.com.au
Australia*Hong Kong*Singapore*India*MalaysiaOriginally posted by vyaw2003:ok i understand, pay the depoist as the amount which tilts it to +CF and then i dont have to worry about it. Until it is paid off and funding my retirement. sweet.
This might depend on how much risk you are prepared to take. If you are prepared to risk more then you could go for cash flow neutral after tax, which means you could afford to purchase more properties. If you dont like risk, then larger deposits and fewer properties would be safer.
Andrew
http://www.rentmaster.co.nz – Property Management Software
http://www.RentalAnalyst.com – Property Analysis Software10 yrs ago it was $50K, today I think $100K+.
Ofcourse that is just the beginning for some.“There is nothing scarier than ignorance in action”
For extra income vist the virtual world of Weblo and buy and any property there. Just visit the following URL http://www.weblo.com/property and you will understand what I am talking about. This is realy a good website to invest in.
Originally posted by The Contrarian:10 yrs ago it was $50K, today I think $100K+.
Ofcourse that is just the beginning for some.“There is nothing scarier than ignorance in action”
Are you saying the ‘average’ income is $100k? Or are you saying it is a ‘high’ income?
Cheers,
Marc.
[email protected]
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