Hi All,
I am a long time reader, but don’t normally post, as I haven’t been in a position to invest, until now.
I have recently changed employment status and have a contract which nets $180,000 pa. My contract runs till March. I am looking at my investment options, as obviously I would like to utilise this income for maximum advantage whilst I have it.
I have relatively low bills, and am eligible for the FHOG.
My initial thoughts were as follows:-
Purchase a property (I’m Sydney based) for around $500k, to hold long term. I would then live in it for 6 months, in order to claim the grant. I could then rent an apartment (im single for now )and use this property to negatively gear, in order to take advantage of the tax benefits.
I have a deposit of 35k at this time.
My main questions are:-
What does everyone think of this strategy?
What other strategies exist? What other options should I consider in my position?
Obviously my cash flow is quite good, and I would like to invest smartly. I would like to reduce the tax I pay if possible to make the most of my income.
FYI…If I were to come off contract I could expect a full time position around $100k.
Thanks!
I am a long time reader, but don’t normally post, as I haven’t been in a position to invest, until now.
I have recently changed employment status and have a contract which nets $180,000 pa. My contract runs till March. I am looking at my investment options, as obviously I would like to utilise this income for maximum advantage whilst I have it.
I have relatively low bills, and am eligible for the FHOG.
My initial thoughts were as follows:-
Purchase a property (I’m Sydney based) for around $500k, to hold long term. I would then live in it for 6 months, in order to claim the grant. I could then rent an apartment (im single for now )and use this property to negatively gear, in order to take advantage of the tax benefits.
I have a deposit of 35k at this time.
My main questions are:-
What does everyone think of this strategy?
What other strategies exist? What other options should I consider in my position?
Obviously my cash flow is quite good, and I would like to invest smartly. I would like to reduce the tax I pay if possible to make the most of my income.
FYI…If I were to come off contract I could expect a full time position around $100k.
Thanks!