Hello everyone,
I am a first time home buyer and am in a big dilema to whether buy a first home worth $370,000 (that is what i can get from bank n through my cash deposit) or invest in a studio apartment worth $200,000 with net return of $11,900 pa in Sydney. In both the cases i will have to take loan as i have some cash deposit. I have a wife who is planning to return to part time work soon as we had a baby one year ago. She will continue to work part time untill we have another baby in thee years.
If i go for investment property, I should have an equity of atleast $65,000 in three years. If I buy my first home, I will not be able to get a decent property in a decent suburb now. I will have to settle for something that i really dont want. My draem property is worth $460,000 now.
What do you recomend?
Any advice would be highly appreciated.
Regards
Kishore
Do some sums and compare the two. If you buy the investment I presume you will have to rent, so you will need to take into account rent payable, increasing every 6 months and the CGT payable on the investment if you were to sell.
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
Financing a studio apartment may take up more of your deposit than you intened to put in as lenders have gone off these as security and limit their lvr accordingly.
Richard Taylor | Australia's leading private lender
I require more detail then is possible here, drop me a line or text at http://www.birchcorp.com.au and I will be able to give you some guidance.
Thank you everyone, appreciate your feedback…..
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