Hi,
The wife and I are about to purchase a house in the Nowra NSW area.
We are entitled to the FHOG, however we are currently caretakers for my Mothers house, which is much nicer than any house we will afford to buy.
We are currently paying her a reduced rent of $200 as we only have access to 2 of the 5 bedrooms, and the house is still largely used by the wider family for Christmas/Mothers Day/Easter etc.
Mum is in a nursing home and for her to leave the house empty would be financially crippling for her, as well as not having a "home to go to" would not be good for her mentally. I also understand if she sells the house and deposits a large wad of cash into the bank she will be under heavy tax scrutiny.
Long story short we dont really want to move, and we can't really.
We are not sure whether we should.
1) Buy with the FHOG, move to the house for 6 months and do some renovations, fix up a few things, and then after the 6 month period rent out the house. (We are looking at a $280-300k Purchase with $300-$320/week Rental return). During this time we would have to continue paying the $200 to Mum as per the reasons above.
2) Buy and rent it out immediately, I understand if you purchase an IP you can still use the FHOG Later (Assuming it will continue for a few years yet?).
Basically I wanted some advice regarding this.
I have calculated that If use option 2 I will receive rental income of approx $7800 minus costs. As well as being able to claim tax deductions against the property immediatly.
If I use option 1 I will receive $7000 FHOG and approx $9k in Stamp Duty Concession.
So The obvious choice would be option 1? But Am I missing something.
I also wanted to know what people think about the recent comments in media about the drop in house prices. I understand this is mainly regarding Capital cities, does any have knowledge of the Nowra are and feel that this will also affect us.
Also, wondered what you would think about our ability to be approved for a loan given our incomes of approx $110k combined.
I could go on all day with questions but if anyone can recommend a course of action to get started that would be great.
I wouldnt mind speaking to a professional about this but my account didnt seem interested in discussing it, would I be better to speak to a financial advisor or someone else all together?
Thanks in advance,
Michael
The wife and I are about to purchase a house in the Nowra NSW area.
We are entitled to the FHOG, however we are currently caretakers for my Mothers house, which is much nicer than any house we will afford to buy.
We are currently paying her a reduced rent of $200 as we only have access to 2 of the 5 bedrooms, and the house is still largely used by the wider family for Christmas/Mothers Day/Easter etc.
Mum is in a nursing home and for her to leave the house empty would be financially crippling for her, as well as not having a "home to go to" would not be good for her mentally. I also understand if she sells the house and deposits a large wad of cash into the bank she will be under heavy tax scrutiny.
Long story short we dont really want to move, and we can't really.
We are not sure whether we should.
1) Buy with the FHOG, move to the house for 6 months and do some renovations, fix up a few things, and then after the 6 month period rent out the house. (We are looking at a $280-300k Purchase with $300-$320/week Rental return). During this time we would have to continue paying the $200 to Mum as per the reasons above.
2) Buy and rent it out immediately, I understand if you purchase an IP you can still use the FHOG Later (Assuming it will continue for a few years yet?).
Basically I wanted some advice regarding this.
I have calculated that If use option 2 I will receive rental income of approx $7800 minus costs. As well as being able to claim tax deductions against the property immediatly.
If I use option 1 I will receive $7000 FHOG and approx $9k in Stamp Duty Concession.
So The obvious choice would be option 1? But Am I missing something.
I also wanted to know what people think about the recent comments in media about the drop in house prices. I understand this is mainly regarding Capital cities, does any have knowledge of the Nowra are and feel that this will also affect us.
Also, wondered what you would think about our ability to be approved for a loan given our incomes of approx $110k combined.
I could go on all day with questions but if anyone can recommend a course of action to get started that would be great.
I wouldnt mind speaking to a professional about this but my account didnt seem interested in discussing it, would I be better to speak to a financial advisor or someone else all together?
Thanks in advance,
Michael