I am thinking of purchasing a nice apartment and renting out one of the rooms to help with the mortgage. Living in one room and renting out the other will result in a shortfall of about $20,000 p.a taking into account everything. If I were to rent out the whole apartment, its almost neutrally geared due to my 65% LVR.
Do you think this is a good idea ? I'm thinking $20,000 loss isnt too bad considering I get to own a place myself rather than paying $400 p/w of rental which sums up to roughly the same costs of owning a property. Plus, I also get to live in it , making half the property as my PPOR and half as an IP therefore claiming half the tax deductions. (Assuming apartment divided 50% and 50%)
Any advice / help regarding this would be very much appreciated.
Cheers ~
Do you think this is a good idea ? I'm thinking $20,000 loss isnt too bad considering I get to own a place myself rather than paying $400 p/w of rental which sums up to roughly the same costs of owning a property. Plus, I also get to live in it , making half the property as my PPOR and half as an IP therefore claiming half the tax deductions. (Assuming apartment divided 50% and 50%)
Any advice / help regarding this would be very much appreciated.
Cheers ~