Hi all, as a first home buyer, I've been considering buying an IP to rent out, while renting in a cheaper location. The idea is that not only can I lease the IP out for more $$ than the rent I'll pay, I can also rent close to work to save more $$ on public transport tickets, and use my commute time to earn more $$ freelancing.
Has anyone done something like this before? Am I missing anything important, such as the CGT-free benefits of actually living in the property? I've heard the Victorian government is cutting the First Home bonus heavily, which seems more motivation to try this strategy. I'm going to speak with an accountant beforehand, but just wondered if anyone has opinions on this whole buy-and-rent thing.
The other alternative would be to live in the property and bring a roommate for the extra $$ and utilities savings. However, I'm a bit hesitant to go down this route (unless it works out to be a lot more lucrative!), mainly because I enjoy living on my own, and also nervous about potential nutjob roommates.
Thanks for reading. Any advice or potential disaster-scenario warnings would be appreciated!
Has anyone done something like this before? Am I missing anything important, such as the CGT-free benefits of actually living in the property? I've heard the Victorian government is cutting the First Home bonus heavily, which seems more motivation to try this strategy. I'm going to speak with an accountant beforehand, but just wondered if anyone has opinions on this whole buy-and-rent thing.
The other alternative would be to live in the property and bring a roommate for the extra $$ and utilities savings. However, I'm a bit hesitant to go down this route (unless it works out to be a lot more lucrative!), mainly because I enjoy living on my own, and also nervous about potential nutjob roommates.
Thanks for reading. Any advice or potential disaster-scenario warnings would be appreciated!