Hi all,
I am just about to buy a property for $530K + $23K stamp duty with $250K owing on a property worth $430K.
Now I have toyed with the idea of shifting the debt fro the IP into the PPOR and then buying another IP.
ie PPOR $350K and IP $415K
Thus I will be able maximise my tax benefits as I am a high income earner. However the additonal tax refund I get will only be around $5K per annum which for me is not worth the hassle nor can I buy a another IP at $415K in the similar area. I think my current capital growth on IP will exceed $5K per annum.
If you are like me you probably have excel models which can perform a cost benefit analysis. All variables are known but it is hard to predict annual growth. I read a report that which states current long term is unstainable. Don't qoute me but the report states that if wages move at ther current rate then the average home owner will have to pay in excess 15 years of their salary. This must be a limiting factor.
What do others think? Will property eventualy plateau as percentage of wage contributing to repayments will limit growth?
PK
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