We have two options.
1.Buy IP in Sydney. $300 - $400K. (To live in it to claim FHOG we need 2 bedder not much further then an hours drive from city)
Con: need to keep saving for longer to afford deposit, need to move out of our house to live in it to take advantage of the FHOG, higher holding costs, higher loan, less rental yield.
Pro: Can claim first home owners grant, is in a local(ish) area
2. Buy IP in a regional area price range $100 - $300k
Con: To far away for us to live in it to claim the FHOG (but it has been confirmed we would still be entitled to use the grant when we buy our home, have to pay stamp duty unless we buy off the plan) dont know the area, limited access to get to the house.
Pro: Can get on the property ladder almost straight away, holding costs alot less, can start adding properties to our portfolio quicker as costs are less, don't have to move out of our home (for the FHOG) higher rental yields.
I am sure there must be tax implications for each that could be deal breakers. I am unaware of them but have an appointment to discuss it with a adviser soon.
I'm confused on which is the best option. Would love to know your feedback.
TIA
1.Buy IP in Sydney. $300 - $400K. (To live in it to claim FHOG we need 2 bedder not much further then an hours drive from city)
Con: need to keep saving for longer to afford deposit, need to move out of our house to live in it to take advantage of the FHOG, higher holding costs, higher loan, less rental yield.
Pro: Can claim first home owners grant, is in a local(ish) area
2. Buy IP in a regional area price range $100 - $300k
Con: To far away for us to live in it to claim the FHOG (but it has been confirmed we would still be entitled to use the grant when we buy our home, have to pay stamp duty unless we buy off the plan) dont know the area, limited access to get to the house.
Pro: Can get on the property ladder almost straight away, holding costs alot less, can start adding properties to our portfolio quicker as costs are less, don't have to move out of our home (for the FHOG) higher rental yields.
I am sure there must be tax implications for each that could be deal breakers. I am unaware of them but have an appointment to discuss it with a adviser soon.
I'm confused on which is the best option. Would love to know your feedback.
TIA