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From: Mike .
first ip, salary sacrifice
From: Dee
Date: 22 Jan 2001
Time: 22:27:11
I'm looking to buy 1st ip, still living with parents. I'm trying to compare these 2 situations 1) save 20000, buy IP up to 200K on an interest only loan 95%, rent it out with reasonable yield, get tax variation, ie negatively gear and wait for capital growth
2) buy a 1st home/townhouse, at say 120k live in it as primary place of residence, obtain $7000 first home owner grant, and stamp duty concession, move back to parents house after 2months, rent the house out and obtain tax deductions on interest, building depreciation etc. In addition my employer is offering salary sacrifice into home mortgage repayments which could be used to pay off principal so in effect - principal and interest loan is mostly paid off with pretax income. I could probably purchase another ip in maybe 2yrs.
Option 2 looks highly enticing for building equity quickly without relying on capital growth alone.
Thanks, Dee
first ip, salary sacrifice
From: Dee
Date: 22 Jan 2001
Time: 22:27:11
I'm looking to buy 1st ip, still living with parents. I'm trying to compare these 2 situations 1) save 20000, buy IP up to 200K on an interest only loan 95%, rent it out with reasonable yield, get tax variation, ie negatively gear and wait for capital growth
2) buy a 1st home/townhouse, at say 120k live in it as primary place of residence, obtain $7000 first home owner grant, and stamp duty concession, move back to parents house after 2months, rent the house out and obtain tax deductions on interest, building depreciation etc. In addition my employer is offering salary sacrifice into home mortgage repayments which could be used to pay off principal so in effect - principal and interest loan is mostly paid off with pretax income. I could probably purchase another ip in maybe 2yrs.
Option 2 looks highly enticing for building equity quickly without relying on capital growth alone.
Thanks, Dee
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