Hi, I have 2 houses currently (one in Brisbane, one in Adelaide).
The house in Adelaide is an investment property, and is being rented out for $325/wk – my repayments are $300/wk on the mortgage, however given expenses of water, rates etc, i am negatively geared, right?
My other house is where i live, and our repayments are $630/wk.I really want the house where i reside out at the end of the year, and purchase another one to live in. I will then have 2x investment houses. – However, on the current interest rates, if i rented this house out i estimate to get around $330/wk, and given that the repayments are $630/wk, there will be a $300/wk difference ! Urgh, this seems scary! I would want to purchase my residing house at around $500k, so my repayments would be pretty high on that too..
Is this possible to do? I estimate my repayments would be approx $325/wk + $330/wk + $650/wk (new house) – that seems like a lot! ? One persons wage could cover this, and the other wage would have to pay for day to day living .. has anyone gone this extreme before??
Also, one more thing… my current investment house has been rented out for almost 1year, someone mentioned something about capital gains tax or the like which i would have to pay at some stage soon? Can someone tell me what this means, is it just when/if i sell? Thanks! A
Any advice would be appreciated, cheerz!
shel25
First of all the CGT is only payable when you sell, thus you do not need to think about that for a while.regarding your plan, well…I don't know your income or your partners so cannot say how you are going in that. But, I would not be buying at the moment, wait, house prices , especially in the about $300,000 mark will fall over the next few months and years.
Your Adelaide house maybe negetive geared – you are putting in money, but what are your depreciation claims??
As you indicate for your Brisbane house – you are better off selling it, do not rent out at the rent you indicated – only do this if we are in a bull market for prices which off course we are not.good luck
Whether you could afford would depend on your income. Whether it is a good time to buy depends on your thoughts on the market. Do you think it will drop more in that area?
To try to stretch your money further, i would try to get all your loans interest only, and get depreciation schedules done and make sure you are claiming all that you can – most people miss things and end up paying more tax.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Mate,
Adding to Terry comments on the depreciation schedule, visit http://www.propertyreturns.com.au we are running a special now $299 fully inspected… this should help your situation
Thanks Liam
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