Just wondering, say for example, you want to buy an IP with cash.
And that IP property gives you a rental every week or so.
Is it a good idea to buy an IP with cash, and then use the rental income to do repairs, improvement (this would mean, we would have to save the money from rents for improvements/repairs etc).
What would you guys suggests?
Im all new to this and any sort of help will be apprecaited. You guys always do a good job
I should also mention, we own a another house outright, that we live in
This is a question which would relate to your tax situation:
If you have substantial savings available to enable the outright purchase of a property then you should consider your risk profile – ie do you put all of your eggs in one basket or do you purchase 3 or more properties with that equity hence spreading your risk?
How much do you borrow (depends upon how much risk you want to bear)? Do you want positive cashflow, cashflow neutral or negative cashflow ie do you want to utilise the interest, outgoings & depreciation to be offset against your income hence reduce your taxable income?
How do you fund several investment properties? Do you use all of your current savings as the deposits for the properties or do you keep some aside?
What structure do you use eg trusts/direct ownership/inside your super fund?
It may well pay to seek well qualified advice to maximise your benefits
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