All Topics / Help Needed! / ppor or investment

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of young nyoung n
    Participant
    @young-n
    Join Date: 2010
    Post Count: 6
    December 2, 2010 - 12:37 pm

    hello everyone. just a newbie here looking for advice. 

    i have around 350000 inheritance. i am from darwin and would prefer to buy locally. as although it may have had its major boom. i think buying interstate would be too difficult to manage. i currantly have an income of around 36000 after tax. i currantly rent for 140 per week. i am wondering if people think it would be better to buy a small 2 bedroom unit for me 2 live in. * i could buy one outright with the inheritance, thought i would nothing flash. but would be close to the city and amenities etc. and then i could get free stamp duty and 1st home buyers. or should i take a loan out, buy a house for around 550000 rent it out, have them pay off my loan repayments and just continue renting. any advise would be fantastic. if anyone is famiular with darwin. the unit i would buy would be in stuart park. and if i was to buy a house it would be in palmerston. cheers in advance for some advice           

    Profile photo of itsandrewitsandrew
    Participant
    @itsandrew
    Join Date: 2007
    Post Count: 294
    December 3, 2010 - 5:56 am

    Why limit yourself to one property.  With that kind of deposit you could potentially purchase 3 or 4 really good properties (subject to serviceability).  What do our brokers on this site think?

    Andrew

    itsandrew

    Go as far as you can see and you will see further.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    December 4, 2010 - 9:26 pm

    I would look at doing both.

    Buy your house for cash live in it, get the FHOG and CGT exemptions, and immediately set up a LOC on it and then buy an investment.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Dazz_996Dazz_996
    Member
    @dazz_996
    Join Date: 2010
    Post Count: 13
    December 8, 2010 - 11:09 pm

    I agree with Terry,
    Buy yourself the house out right then you are in a great position to use your equity for an investment,
    A line of credit would work well here but needs a good accountant.

    Dazz

    Profile photo of Kaz YoungKaz Young
    Participant
    @kaz-young
    Join Date: 2010
    Post Count: 25
    December 9, 2010 - 9:48 am

    Hi there!

    I'd be inclined to agree with the Terry and Dazz. 
    If you wish to own your place then go for it.  I think when the government is offering some free money – i.e. FHOG, then you should take advantage! 
    You could use anything potentially left over as well as equity to fund IP purchase(s).  That could mean one more expensive IP or several cheaper IPs.
    You are in really good position to get yourself going with several properties here, so it's really worth the time and effort to think about your strategy and talk it through with an advisor or well educated (in investment strategy and finance) accountant or broker.

    Cheers

    Kaz

Viewing 5 posts - 1 through 5 (of 5 total)

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