Hello,
I'd really like your thoughts on this. I'm new to this and feel like there's so much to learn (including learning what exactly are the things that I have to learn), so I'd like to bounce some ideas off people who have more experience than I do.
Here's my situation:
Purchased a unit OTP 3 years ago, settlement is in a few months. This is in Belconnen, ACT.. (Yes, area currently has issues with oversupply :/) Initially, I wanted the place because I love the area. Right next to the lake and shopping centre. University of Canberra nearby (where I worked part time) and easy public transpo to CBD (where I worked full time). I was going to live there for a while, claim it as my first home, get the FHOG + stamp duty concession. However, since then I found an awesome job in Sydney and had to relocate. Currently renting in Sydney.
What I think my options are:
- Continue with claiming it as first home for the first 6 months then convert to IP - I've got opportunites to do some contract work for my current company which would require me to be in ACT next year - only a few days per week though so that means I will have to keep renting my current place in Sydney.
- Forego the FHOG etc for now and just have it as an IP from the start.
- Sell - Probably not ideal considering the market at the moment?
Another thing I'm not sure about:
- I will have spare cash after 20% deposit and 12 months of repayments (P+I or I at current rates). I could either put in a bigger deposit or leave the extra cash in an offset account - should I aim to pay off this loan quicker (and I guess build equity quicker) or leave myself some cash?
My current thoughts:
- Claiming it as first home means 20k in savings (stamp duty + FHOG).
- Having it as IP from the start means claiming interest only repayments as deductions for those first 6 months which would be about 3k less tax. Also means that I can opt for FHOG later. Best case scenario I get a tenant straight away, that would be maybe 8.5k.
I'd really appreciate your thoughts on:
- What you would do in my situation or
- What other things I should look into to compare my options or
- What kind/s of professional advisor should I go talk to (and any specific suggestions for Sydney?)
I'd really like your thoughts on this. I'm new to this and feel like there's so much to learn (including learning what exactly are the things that I have to learn), so I'd like to bounce some ideas off people who have more experience than I do.
Here's my situation:
Purchased a unit OTP 3 years ago, settlement is in a few months. This is in Belconnen, ACT.. (Yes, area currently has issues with oversupply :/) Initially, I wanted the place because I love the area. Right next to the lake and shopping centre. University of Canberra nearby (where I worked part time) and easy public transpo to CBD (where I worked full time). I was going to live there for a while, claim it as my first home, get the FHOG + stamp duty concession. However, since then I found an awesome job in Sydney and had to relocate. Currently renting in Sydney.
What I think my options are:
- Continue with claiming it as first home for the first 6 months then convert to IP - I've got opportunites to do some contract work for my current company which would require me to be in ACT next year - only a few days per week though so that means I will have to keep renting my current place in Sydney.
- Forego the FHOG etc for now and just have it as an IP from the start.
- Sell - Probably not ideal considering the market at the moment?
Another thing I'm not sure about:
- I will have spare cash after 20% deposit and 12 months of repayments (P+I or I at current rates). I could either put in a bigger deposit or leave the extra cash in an offset account - should I aim to pay off this loan quicker (and I guess build equity quicker) or leave myself some cash?
My current thoughts:
- Claiming it as first home means 20k in savings (stamp duty + FHOG).
- Having it as IP from the start means claiming interest only repayments as deductions for those first 6 months which would be about 3k less tax. Also means that I can opt for FHOG later. Best case scenario I get a tenant straight away, that would be maybe 8.5k.
I'd really appreciate your thoughts on:
- What you would do in my situation or
- What other things I should look into to compare my options or
- What kind/s of professional advisor should I go talk to (and any specific suggestions for Sydney?)