Lads,
In between the entertainment provided from discussions in the coffee lounge (most memorable chinas mention of naked people with skin deseases lying naked on leather sofas) I'm chasing some stern advice.
Vitals:
Experience: L Plates!
Age: 25
Marital status: Single (will make sense later on, tax wise) Who wants to go out with a bogan 'miner' anyways!
Other commitments: No other debts, I drive a shitheap car when I'm at home... No credit cards either, which is starting to be a real pain when travelling
Properties: 1 (don't think i can handle the headaches of anymore than one haha!) I had been looking for 2 years, but couldn't decide on the budget. I have a massive 'catnip style' love for terrace houses, but couldn't justify spending 700k for a place in richmond. It would be handy being closer to the airport!
Finance terms: Borrowed 75% of the 199k, In an interest only loan with an offset account. Variable interest at 5.99 as i write. still owing 150k on the *******.
Property in Question: An 2 story, 2 bedroom terrace style unit in Frankston Victoria. Has a front and rear courtyard, with a rear access laneway with a lock up own garage on the title. In a bloody good spot, right next door to monash university, as well as opposite the Monash student services accommodation. Also a short walk to leawarra train station, which will eventually be made electric. Gets constant security watch with the uni, and has been really safe, especially with all the tools (not me lol) left in the place when works were on.
Experience so far: Bought for 199k around 3 months ago. Have spent 19k in renovations (before and aft pics below), Living in one bedroom, whilst boarding out the other to a close friend, as I am away with work quite a lot (120pw). Was being previously rented out for 270 per week. Next door is being rented at 300pw, which has only just really had a repaint. I honestly believe without having a public ****, that 320pw would not be out of the question for this place. I had fantasies of impressing people I dont know with 7% yields, but in the end, I didn't want to take on a riskier place like moe or morwell, or look into another state that i dont know about.
Now this was what was happening up until recently: I was working FIFO 2:2 weeks as a professional (gotta keep some secrets!) on a WA LNG gas plant construction project. Life was good, I could work 2 weeks, then spend 2 weeks tarding the turd up! I spent many many 12 hour days, and the efforts is really starting to shine through. I think i've made a mistake by paying the 19k cash on renos, starting to think I should of borrowed that money instead. Plans were to after the place was finished to travel more around australia, staying at backpackers for my 2 weeks off. Was planning on paying off 5k per month off the mortgage, and have it owned outright just after my 27th birthday. This was the plan..
Now this is where the problem lies.... I have been promoted at work to leading the crew I work with on a new LNG site that is pipelined to go for 5 years, my wage has gone up significantly (from 120K to 210k) per year, but I have to work more. Now to 3:1 reluctantly. I had my developer uncle come over, who is real switched on. He was saying now as Im paying a shiteload in tax, I shouldn't pay the place off as quick as I can, I should look into getting my mate to rent it properly outright off me, and then ill pay him the board to him, which in the end goes through the property manager back to me. Stop paying the 5k per month off the loan as planned, and have that slight negative gear (im still living here don't forget) deduct that off my -now higher- tax group, and try and bring it down a bit.
Thoughts? What is the best thing to do tax wise? Should I just sink the lot into an aston martin? Saw one on the street today in perth, they look like a total lady killer
now ill post some before and afters for a perve!
In between the entertainment provided from discussions in the coffee lounge (most memorable chinas mention of naked people with skin deseases lying naked on leather sofas) I'm chasing some stern advice.
Vitals:
Experience: L Plates!
Age: 25
Marital status: Single (will make sense later on, tax wise) Who wants to go out with a bogan 'miner' anyways!
Other commitments: No other debts, I drive a shitheap car when I'm at home... No credit cards either, which is starting to be a real pain when travelling
Properties: 1 (don't think i can handle the headaches of anymore than one haha!) I had been looking for 2 years, but couldn't decide on the budget. I have a massive 'catnip style' love for terrace houses, but couldn't justify spending 700k for a place in richmond. It would be handy being closer to the airport!
Finance terms: Borrowed 75% of the 199k, In an interest only loan with an offset account. Variable interest at 5.99 as i write. still owing 150k on the *******.
Property in Question: An 2 story, 2 bedroom terrace style unit in Frankston Victoria. Has a front and rear courtyard, with a rear access laneway with a lock up own garage on the title. In a bloody good spot, right next door to monash university, as well as opposite the Monash student services accommodation. Also a short walk to leawarra train station, which will eventually be made electric. Gets constant security watch with the uni, and has been really safe, especially with all the tools (not me lol) left in the place when works were on.
Experience so far: Bought for 199k around 3 months ago. Have spent 19k in renovations (before and aft pics below), Living in one bedroom, whilst boarding out the other to a close friend, as I am away with work quite a lot (120pw). Was being previously rented out for 270 per week. Next door is being rented at 300pw, which has only just really had a repaint. I honestly believe without having a public ****, that 320pw would not be out of the question for this place. I had fantasies of impressing people I dont know with 7% yields, but in the end, I didn't want to take on a riskier place like moe or morwell, or look into another state that i dont know about.
Now this was what was happening up until recently: I was working FIFO 2:2 weeks as a professional (gotta keep some secrets!) on a WA LNG gas plant construction project. Life was good, I could work 2 weeks, then spend 2 weeks tarding the turd up! I spent many many 12 hour days, and the efforts is really starting to shine through. I think i've made a mistake by paying the 19k cash on renos, starting to think I should of borrowed that money instead. Plans were to after the place was finished to travel more around australia, staying at backpackers for my 2 weeks off. Was planning on paying off 5k per month off the mortgage, and have it owned outright just after my 27th birthday. This was the plan..
Now this is where the problem lies.... I have been promoted at work to leading the crew I work with on a new LNG site that is pipelined to go for 5 years, my wage has gone up significantly (from 120K to 210k) per year, but I have to work more. Now to 3:1 reluctantly. I had my developer uncle come over, who is real switched on. He was saying now as Im paying a shiteload in tax, I shouldn't pay the place off as quick as I can, I should look into getting my mate to rent it properly outright off me, and then ill pay him the board to him, which in the end goes through the property manager back to me. Stop paying the 5k per month off the loan as planned, and have that slight negative gear (im still living here don't forget) deduct that off my -now higher- tax group, and try and bring it down a bit.
Thoughts? What is the best thing to do tax wise? Should I just sink the lot into an aston martin? Saw one on the street today in perth, they look like a total lady killer
now ill post some before and afters for a perve!
