HI all. I am currently looking to invest in property and need some advice. First my background. I am 30,married. I earn approx 80 grand before tax with my wife on approx 30. No kids but probably one in say three years.We have a house worth around 320 grand in todays market and owe 200 on it. About ten grand in savings and a collectable car that is appretiating and currently worth 70,000 which i am happy to sell in financial hardship.My job is secure(aircraft engineer) as is my wifes.
Now what to do.
Im getting older and tend to spend my money if it isnt tied up in something and if i dont buy a investment property now it may be to hard when i have kids.
I have put a bid in on a duplex(complete not half) in north nowra on the south coast of just over 300,000.I will be borrowing the full amount against my name only for tax reasons.It is returning 320 combined per week.They are two bedroom with carport..Now some questions.
I think the market is good to buy,what do you think.Prices have dropped but seem to be leveling out in the area.Two years ago you could not buy a two bed unit in north nowra for under200,000)
I know houses give better capital growth than units but this duplex is ready for strata(meters etc) does that make it better than your standard unit in capital growth.
Tax man said i should get back 9,000 min in tax so that with rent near covers repayments of 460 per week interest only.
Any and all info and advice would be great as i am very new to this.
So what you think.Hi Devo
Firstly good on you to take the step and plan for you wealth creation future.
I will not comment on the property itself as i am unaware of the area and what it is doing and am sure there are other forumites who can offer a better view to Nowra than a Qlder could.
What i would say however is make sure that you structure you loan and the entity in which you purchase your property in correctly as given your changing future circumstances a mistake here could cost you thousand down the track in future tax benefits.
Ensure that the loan in not X collaratlised and that your mortgage broker has established so that it works for you and not for your lender.
Too often we get to see applications where they have been badly structured by the lender or an inexperinced mortgage broker and the clients circumstances change to his or her cost.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
As far as structuring the loan.It is interest only for two years so i can build up cash after purchase for security.Loan % is very good after i pushed the lender with morgage choice saying they couldnt match it.Also is it a smart move with me still owing 200,000 on my primary residence(worth 320,000). I guess what im trying to do is get the amount of tax i pay down as it is a fair slice of my wage.. So if i can get it so that with rent and tax refund combined it more or less covers the loan,i can continue to pay more of my current home loan with my income and let the duplex self sustain itself and hopefully see a capital growth in the duplex in a few years if sold whole or seperate/strata title and sell seperate hopefully making a bit more off them.Even if the market stays the same for some time i think i can continue payment on it with out it adding much of a financial burden.Does this sound right.
devo
No disrespect but Mortage Choice are like a big sausage factory with all of their branches franchised so it wold not be difficult to beat what the have quoted.
Secondly a 2 year interest only period is nothing on our PPOR and needs to be alot longer than that. What do they do ater 24 months soncert you to P & I – riduculous. Both loans need to be interest only.
Presumably your new lender has suggested a Trust structure on a non cross colateralised loan if not they are not acting on your behalf.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Hi agin.Thanks for the responses. What is trust structure on a non cross colaterised loan ???
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