Hello Experts,
I am a newbie and following this forum since quite time.I am educating my self for buying a IP in coming days, have some questions though.
kindly correct me if any of my assumption/belief are wrong-
1) I wanted to take a loan as PPOR , stay there for 6 months then covert it to IP so that I don't need to pay GST if a decide to sell the property in next 6 years.
2) me and my wife earns 80K each per year and we are planning to buy a property worth 5-600K(with 20 % down payment), total tax benefit would be 27K per year , where as individually the tax payable to us ( before deducting home loan interest tax deductions ) comes around 20 K each. so we both would be able to save around 14k each.
3) the EMI will come to around 3-3.5K( 4.8-5 % interest rate) where as our earning is around 10 K per month.
4) I was planning to start partial pre-payment from very first month and try to finish the loan asap but i got to know about 100 % offset account and use of credit card to make it more effective.
Now I am confuse which option is more beneficial , 100 % offset account one or doing partial pre-payment .
5) i am buying much lower cost propery then my loan borrowing capacity due to fear if market collapse in coming years(as rumors are going on ), also i wanted to keep on person income safe in case market situation or our job scenarios changes.
6) As property selection criteria I am valuating median prices of cost and rent ratio( along with considering other charges- strata etc) and shortlisting top 5 suburbs in NSW , then keeping an eye on current sale and auction results.
As i said i am a newbie and just started learning the basics, any help would be greatly appreciated , kindly guide me in right direction.
Kindly advice .
Regards,
Rajorich
I am a newbie and following this forum since quite time.I am educating my self for buying a IP in coming days, have some questions though.
kindly correct me if any of my assumption/belief are wrong-
1) I wanted to take a loan as PPOR , stay there for 6 months then covert it to IP so that I don't need to pay GST if a decide to sell the property in next 6 years.
2) me and my wife earns 80K each per year and we are planning to buy a property worth 5-600K(with 20 % down payment), total tax benefit would be 27K per year , where as individually the tax payable to us ( before deducting home loan interest tax deductions ) comes around 20 K each. so we both would be able to save around 14k each.
3) the EMI will come to around 3-3.5K( 4.8-5 % interest rate) where as our earning is around 10 K per month.
4) I was planning to start partial pre-payment from very first month and try to finish the loan asap but i got to know about 100 % offset account and use of credit card to make it more effective.
Now I am confuse which option is more beneficial , 100 % offset account one or doing partial pre-payment .
5) i am buying much lower cost propery then my loan borrowing capacity due to fear if market collapse in coming years(as rumors are going on ), also i wanted to keep on person income safe in case market situation or our job scenarios changes.
6) As property selection criteria I am valuating median prices of cost and rent ratio( along with considering other charges- strata etc) and shortlisting top 5 suburbs in NSW , then keeping an eye on current sale and auction results.
As i said i am a newbie and just started learning the basics, any help would be greatly appreciated , kindly guide me in right direction.
Kindly advice .
Regards,
Rajorich