I will soon be relocated to an overseas location and employer has told me the salary would be exempt income.
I'm contemplating of getting an investment property before leaving for the new post. It will add a bit of stress and there is a risk of making rush decisions, however I have certain fear of missing out - don't want to be sent away for a couple of years and come back and find can't afford any property...
I guess there are some difference in terms of strategy while you are not physically here. one might be there is no negative gearing available (still able to deduct against rent, but not personal income). another might be there is less scope for capital works to add value (reno, GF etc), as I understand if you are not on site, the project could go sideways (nobody else will manage your project as carefully as yourself!)
So what are your suggestions? what's a better strategy for someone working overseas for the mid-term (1 year min, likely to be 2 years or even more)? Buying a house for capital gain, or get a unit for better cash flow? Or try to find a house with gf already build?
Another thing I couldn't get my head around is with exchange rate. If AUD went down, would I be much worse off? Obviously the property price is denominated in AUD and would be lower, but I'm only paying deposit now, and subsequent mortgage payment would be lower as well?
I'm contemplating of getting an investment property before leaving for the new post. It will add a bit of stress and there is a risk of making rush decisions, however I have certain fear of missing out - don't want to be sent away for a couple of years and come back and find can't afford any property...
I guess there are some difference in terms of strategy while you are not physically here. one might be there is no negative gearing available (still able to deduct against rent, but not personal income). another might be there is less scope for capital works to add value (reno, GF etc), as I understand if you are not on site, the project could go sideways (nobody else will manage your project as carefully as yourself!)
So what are your suggestions? what's a better strategy for someone working overseas for the mid-term (1 year min, likely to be 2 years or even more)? Buying a house for capital gain, or get a unit for better cash flow? Or try to find a house with gf already build?
Another thing I couldn't get my head around is with exchange rate. If AUD went down, would I be much worse off? Obviously the property price is denominated in AUD and would be lower, but I'm only paying deposit now, and subsequent mortgage payment would be lower as well?