Hi all,
Sorry about this long story.
Just wanting to here as much advice as possible about decisions in the near future. Will do as much reading as I can etc but this seems like a good place for advice. Also am going to see a FP at the bank soon but he might be somewhat bias so I will see objectively.
Currently 27 with partner and two young children. Both have jobs in regional Victoria. Earning 60k and 40k each. Only have PPOR with 75% mortgage. No savings. Soon to be receiving 60k cash inheritance. That's where my dilemma is.
Goals of semi retire/comfortable in 10-20.
My original plan that i have been doing was pay as much as possible off mortgage and pay off loan in 5 years or sooner now i am getting that bonus and then get a rental and pay that off even quicker with what was our mortgage payment plus renter payments and continue this for 10+ years. In 5 years turn PPOR now into rental.
Problem i now realise is no tax deductions on interest. So looking to stop paying mortgage and sit it in offset because PPOR would be a great rental and I wouldn?t sell for a long time.
1. Thought i had it al worked out. Anyway what would you do with a PPOR that you would turn in to IP in 5 years while getting a 60K inheritance now. Thinking investment property or two? Everything here is CF+ with not much CG. Will that matter with tax deductions?
2. Is it worthwhile worrying about these tax implications too much with mine/our average wages?
3. What might these tax breaks be each year in total?
4. Is it worth having IP's in my name only because of wage difference?
5. How would i set up offset account to offset what property/s once i have IP? Would you have them 80% with I/O or P+I?
Probably missing a lot sorry. Just hoping for some guidance and trying to limit mistakes at this stage. i know it most important to buy the right IP i just want to know how to set this up and now make a new plan for the future.
Thanks all,
Sorry about this long story.
Just wanting to here as much advice as possible about decisions in the near future. Will do as much reading as I can etc but this seems like a good place for advice. Also am going to see a FP at the bank soon but he might be somewhat bias so I will see objectively.
Currently 27 with partner and two young children. Both have jobs in regional Victoria. Earning 60k and 40k each. Only have PPOR with 75% mortgage. No savings. Soon to be receiving 60k cash inheritance. That's where my dilemma is.
Goals of semi retire/comfortable in 10-20.
My original plan that i have been doing was pay as much as possible off mortgage and pay off loan in 5 years or sooner now i am getting that bonus and then get a rental and pay that off even quicker with what was our mortgage payment plus renter payments and continue this for 10+ years. In 5 years turn PPOR now into rental.
Problem i now realise is no tax deductions on interest. So looking to stop paying mortgage and sit it in offset because PPOR would be a great rental and I wouldn?t sell for a long time.
1. Thought i had it al worked out. Anyway what would you do with a PPOR that you would turn in to IP in 5 years while getting a 60K inheritance now. Thinking investment property or two? Everything here is CF+ with not much CG. Will that matter with tax deductions?
2. Is it worthwhile worrying about these tax implications too much with mine/our average wages?
3. What might these tax breaks be each year in total?
4. Is it worth having IP's in my name only because of wage difference?
5. How would i set up offset account to offset what property/s once i have IP? Would you have them 80% with I/O or P+I?
Probably missing a lot sorry. Just hoping for some guidance and trying to limit mistakes at this stage. i know it most important to buy the right IP i just want to know how to set this up and now make a new plan for the future.
Thanks all,