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From: Mike .
Doing things differently.
From: PETER.L
Date: 17 Oct 2000
Time: 07:01:10
A year ago this time we were not even thinking about IP's. It still truly amazes me how in the space of a couple of months we acquired 2 IPs and a debt of $410K. I remember distinctly not too long ago when we said (we hate debt) and (with a big debt we would not be able to sleep at night). Boy things have changed for the better.
Now this is where we have broken the rules. We have decided to purchase our 3rd IP but it will be negatively geared. (sorry). The reason for this is we are buying our dream block of land 130K and building our dream home 220K. Instead of living in it straight away we will be renting it out for around $450 p.w.
We cannot afford to live in this house ourselves at the moment because we would have problems with the repayments. We were always planning to move into a larger home in about 3-4 years and decided to buy at 2000 price now instead of 2004 price. We know for a fact that this suburb has and will continue to have a huge capital growth and that in 3 - 4 years there will be nothing under $500k. This is where we really want to live and bring up the family.
We will be out of pocket $102p.w. But I feel that this is O.K. only because its our future dream home and because the capital growth is so strong. Prices in this suburb just keep going Up! Do you think we are doing the right thing because when we hypothetically mentioned this idea to some friends they thought it was a crazy idea.
Doing things differently.
From: PETER.L
Date: 17 Oct 2000
Time: 07:01:10
A year ago this time we were not even thinking about IP's. It still truly amazes me how in the space of a couple of months we acquired 2 IPs and a debt of $410K. I remember distinctly not too long ago when we said (we hate debt) and (with a big debt we would not be able to sleep at night). Boy things have changed for the better.
Now this is where we have broken the rules. We have decided to purchase our 3rd IP but it will be negatively geared. (sorry). The reason for this is we are buying our dream block of land 130K and building our dream home 220K. Instead of living in it straight away we will be renting it out for around $450 p.w.
We cannot afford to live in this house ourselves at the moment because we would have problems with the repayments. We were always planning to move into a larger home in about 3-4 years and decided to buy at 2000 price now instead of 2004 price. We know for a fact that this suburb has and will continue to have a huge capital growth and that in 3 - 4 years there will be nothing under $500k. This is where we really want to live and bring up the family.
We will be out of pocket $102p.w. But I feel that this is O.K. only because its our future dream home and because the capital growth is so strong. Prices in this suburb just keep going Up! Do you think we are doing the right thing because when we hypothetically mentioned this idea to some friends they thought it was a crazy idea.
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