Hi Folks
My apologies if there is already a thread on this subject.
I have a problem. Our daughter is moving to Canberra to start a graduate job at one of the Government Departments. We were thinking of buying a unit in Turner in our name and rent it to her at the current market rental.
The reasons we have chosen this option rather than her buy it in her name aree: I believe she will not be able to get a loan until her probation is up. This is usually 3 months. She may decide to return to Perth in a couple of years (she cannot stand a cool 15C here, sometimes). If so, we rent to anyone else.
I believe the rentals in Canberra are for 12 mths - we do not want to see her money going down the rent gurguler for long and rather it worked for us from Day One.
I realise CG in Can is around 5% pa (we have been getting that in less than a Qtr in Perth), but yields are good - upto 6% (though this gets eroded by high strata/body corp levies). We are looking at a $375K Unit; Interest only loan.
I would appreciate some comment from all you wise Eastern Staters (and the rest, of course) as to the best option for us. Rent or purchase in Canberra?
The FHOG is not really a carrot as it is a measely 7K.
I realise you do not have all our stats - but a ballpark advice would be good.
Thanks in anticipation.
Lizard King
My apologies if there is already a thread on this subject.
I have a problem. Our daughter is moving to Canberra to start a graduate job at one of the Government Departments. We were thinking of buying a unit in Turner in our name and rent it to her at the current market rental.
The reasons we have chosen this option rather than her buy it in her name aree: I believe she will not be able to get a loan until her probation is up. This is usually 3 months. She may decide to return to Perth in a couple of years (she cannot stand a cool 15C here, sometimes). If so, we rent to anyone else.
I believe the rentals in Canberra are for 12 mths - we do not want to see her money going down the rent gurguler for long and rather it worked for us from Day One.
I realise CG in Can is around 5% pa (we have been getting that in less than a Qtr in Perth), but yields are good - upto 6% (though this gets eroded by high strata/body corp levies). We are looking at a $375K Unit; Interest only loan.
I would appreciate some comment from all you wise Eastern Staters (and the rest, of course) as to the best option for us. Rent or purchase in Canberra?
The FHOG is not really a carrot as it is a measely 7K.
I realise you do not have all our stats - but a ballpark advice would be good.
Thanks in anticipation.
Lizard King