buy two properties in a short period of time?

Chioz

I've been looking to buy a property for a while. A house I am keen on ticks most of boxes except one thing I can't make a deal with, too much asbestos. I do like its location and land just don't want to live in it. To my knowledge, the tenants have been living in it for nearly 7 years. And its rental income can cover the loan interest. I wonder if can buy it as an investment.
However, I am a first home buyer. If I start from an investment property, I wonder if I will automatically lose the First Home Grant. Also, I will continue to rent. Will my expense on rental be deductible on tax purpose?
Another bold option is I have this house as investment first and keep looking to buy one for living. How can I figure out if it is feasible?
BTW, I need to take out a loan on my first home.

lucyliu8472

- to get FHOG you must live in the property for at least 6month or 1year ( depending on your state).
- if it covers interest and you do your loan as interest only, you are not losing much money, so negative gearing doesn not mean much to you
-  where will you live if you buy this one and tenant live in it, you still have rental expense yourself

Chioz

lucyliu8472 发表于 2013-3-28 12:24

- to get FHOG you must live in the property for at least 6month or 1year ( depending on your state). ...
Yes, I will continue to spent on rental if I have this one as an investment property.
Do you mean income from rental on an investment property cover the loan interest don't help in tax perpose?
My understanding is without extra expense on this investment property, I can still buy another house for living.

lucyliu8472

negative gear : if you lose money on your investment property  eg. rental does not cover ( interest + council rate + expense +agent fee+ insurance + update house), whatever falls short, will be the amount that you do not need to pay tax for from you income.  and if you buy investment property but still rent somewhere to live yourself, your rental expense can not be claimed

mmllyy

Chioz 发表于 2013-3-28 12:33

Yes, I will continue to spent on rental if I have this one as an investment property.
Do you mea ...
如果你租房子自己住,所有花费是不可以减税的

mmllyy

mmllyy 发表于 2013-3-28 12:38

如果你租房子自己住,所有花费是不可以减税的
自住房和投资房交的STAMP DUTY 不一样, CITY COUNCIL RATE 也不一样

Chioz

lucyliu8472 发表于 2013-3-28 12:36

negative gear : if you lose money on your investment property  eg. rental does not cover ( interest  ...
I see. Thanks.
I did a calculation. The rental income from this house would cover the loan interest if I had it, even become positve income because of a certain amount in the offset account, It would be a bad investment, no less then the expense I had to pay on rental somewhere else.
I do like the location and land.  

Chioz

Do this mean, for an investment property, we actually don't need an offset account because the amount in it reduces the loan interest?

lucyliu8472

Chioz 发表于 2013-3-28 11:50

I see. Thanks.
I did a calculation. The rental income from this house would cover the loan intere ...
not necessarily bad investment
if can achieve high growth and capital gain, or if can subdivide in future, still good investment
people buy property to negative gear is not the purpose, negative gear should be used as a method to help you along the way, property investment is about create value, not to achieve negative gearing..

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