Hi,
i am planning to buy my 1st IP in SA. i am trying to max my tax return.
i have around 50k equity. looking at just servicing the interest from the IO loan.
should i be getting a
1. 2 bedroom unit for around 200k near CBD and rent it for around 220 pw for a long long time (not much capital growth but max rental to price ratio) or
2. a landed 2 bedrm property for 350k and rent it for around 220 pw (since its far from CBD, cant get much rent from it) wait til the land price rise then sell it off (may have the highest capital growth but lowest rental to price ratio) or
3. a 3 bedrm unit in a high priced area rent it for around 300 pw and hopefully renovate it and sell it in the future (some capital growth and ok rental return)- 350k
what will you do/get for a 1st IP?
Scott
i am planning to buy my 1st IP in SA. i am trying to max my tax return.
i have around 50k equity. looking at just servicing the interest from the IO loan.
should i be getting a
1. 2 bedroom unit for around 200k near CBD and rent it for around 220 pw for a long long time (not much capital growth but max rental to price ratio) or
2. a landed 2 bedrm property for 350k and rent it for around 220 pw (since its far from CBD, cant get much rent from it) wait til the land price rise then sell it off (may have the highest capital growth but lowest rental to price ratio) or
3. a 3 bedrm unit in a high priced area rent it for around 300 pw and hopefully renovate it and sell it in the future (some capital growth and ok rental return)- 350k
what will you do/get for a 1st IP?
Scott