Hi All,
i'm currently in a 3 bedroom villa in far far sydney suburbs. bought last year for 225k. i currently own about 100k only on that. i have used my FHOG and stamp duty allowance on that.
on this property i have paid in extra and can withdraw some 50 k i guess.there are two old properties next to each other 750 sqm each. i buy ony property and my brotherinlaw buys the next door one. and we rent each otherrs out, and make them investment property.
i'm on 77 k a year. my brother in law says i should have tax benefits etc. somehow service the loan for 2-4 years. then we can even get council approval and put townhouses there… as they are 5-7 minutes walk from the station.
main question if this a good deal? also will there be any tax benefit for me in this. i will rent my current 3 bedroom villa as well and make investment property….???
thanks for ur help….
investhut…
Hi
really there is insufficient info provided for people to make a sensible comment. Some of what you have said is confusing….you owe 100k on a 225k property but can only take 50k out? is there some reason you can take it up to 80% or has the value dropped. Plan sounds nice in theory but without knowing costs and borrowings who knows if its viable. Tax benefits? I assume he means -ve gearing. You arent on a high income so the tax saving impact wont be as high as the top tax rate and remember you get these 'benefits" because you are losing money (interest and costs greater than rental income).
Can I ask why you are waiting 2-4 years to act on the development? With a $77 k salary and servicing losses on 2 rental properties and paying rent you wont be accumulating money to act on the plan so why wait. or is that just how long it takes to get development going in that area?
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