Hi all,
My partner and I are looking to buy our first property in 2-3 months? time. As a bit of background, we?re both graduate engineers, combined income of ~118k and a deposit amount of ~40k. We are looking to purchase somewhere with the intention of it being our PPOR for 18-24 months whilst we save for a second property and converting property #1 into an investment. Hoping to maximise the loan (95% LVR) on an IO mortgage with offset account. We?ve budgeted to put approximately $1000pw into the loan to cover the interest, with the remainder going to the offset account.
Our investment strategy is primarily long term cash flow, with reasonable CG. Whilst a parent is willing to go guarantor, we understand this would mean the interest on the portion of the loan they are guaranteeing would not be tax deductible when the property becomes an investment. As such we are considering capitalising the LMI to maximise our future tax deductions.
With this being our PPOR for up to 24 months, we want to find a property that balance investment potential with somewhere we would want to live. We have decided on an area in the northern suburbs of Brisbane that we would be happy to purchase in. The area is outlined by Hamilton/Ascot to the east, Lutwytche/Grange/Alderley to the north and Taringa/Bardon to the west.
We are hoping to start off as cheap as reasonably possible in order to quickly build up cash in the offset. We are trying to weigh up whether it would be more beneficial to buy an older 2bdrm 1/2bthrm apartment in the 300-330k mark to renovate on a budget, or a new/OTP 1bdrm/1bthrm apartment at 350-370k to make the most of the $15000 FHOG and maximise depreciation. We have spent quite a bit of time researching properties in our desired area and attending inspections, but cannot decide between the two strategies.
Any opinions/experiences/thoughts on the best strategy for us going forward would be genuinely appreciated.
My partner and I are looking to buy our first property in 2-3 months? time. As a bit of background, we?re both graduate engineers, combined income of ~118k and a deposit amount of ~40k. We are looking to purchase somewhere with the intention of it being our PPOR for 18-24 months whilst we save for a second property and converting property #1 into an investment. Hoping to maximise the loan (95% LVR) on an IO mortgage with offset account. We?ve budgeted to put approximately $1000pw into the loan to cover the interest, with the remainder going to the offset account.
Our investment strategy is primarily long term cash flow, with reasonable CG. Whilst a parent is willing to go guarantor, we understand this would mean the interest on the portion of the loan they are guaranteeing would not be tax deductible when the property becomes an investment. As such we are considering capitalising the LMI to maximise our future tax deductions.
With this being our PPOR for up to 24 months, we want to find a property that balance investment potential with somewhere we would want to live. We have decided on an area in the northern suburbs of Brisbane that we would be happy to purchase in. The area is outlined by Hamilton/Ascot to the east, Lutwytche/Grange/Alderley to the north and Taringa/Bardon to the west.
We are hoping to start off as cheap as reasonably possible in order to quickly build up cash in the offset. We are trying to weigh up whether it would be more beneficial to buy an older 2bdrm 1/2bthrm apartment in the 300-330k mark to renovate on a budget, or a new/OTP 1bdrm/1bthrm apartment at 350-370k to make the most of the $15000 FHOG and maximise depreciation. We have spent quite a bit of time researching properties in our desired area and attending inspections, but cannot decide between the two strategies.
Any opinions/experiences/thoughts on the best strategy for us going forward would be genuinely appreciated.