Hello to all firstly!
Been searching the net and it looks like I have found a great site!
I'll try and make this as short as possible and make sure to include the main points.
Basically I am trying to decide what the best way to make my money work.
I have some money tied up in a holiday house that will stay as a holiday house for now. I know it is not the best and would be better to rent it
out to generate some income, but not at the moment.
My current situation is I am renting and rent is costing me $25k a year.
I asked the bank about a bank loan and if we were to borrow around $350k (buy for $430k) the repayments would be pretty much the same as what
I am paying for rent now. I understand that the interest rates will rise in the future and it would be costing more to pay off the mortgage
as opposed to the rent I am paying now. But you also have the benefit of capital gains even if they are minimal.
Currently I have around $110k to play with. So I have thought about a few options.
1. Keep renting as is and buy apartments overseas around $50-60k each and rent them out and get a 6.5% return on them per annum. Once I have saved
up another 50-60K buy another one and keep adding properties to my portfolio.
2.Buy a house here in Australia and put down my $110k deposit. Keep repayments the same as if renting, and keep buying the apartments
overseas once I have enough funds. This will not allow me to pay off my mortgage sooner. But the trade off is that I have 6.5%
per annum returns coming in. And this return could be put forward to help buy more apartments. There would also be capital gains to be made
on these apartments and realistically I am thinking 2% per annum.
So really I could buy 2 apartments now and get the the 6.5% return using my deposit. This would not allow me to buy here in Australia as I
would not have a deposit saved up.
I could potentially be buying apartments overseas once every 18 months taking into consideration my income and expenses.
So in 10 years I could realistically have 9-10 apartments but still be renting here in Australia. Or have 7-8 apartments and be paying of a mortgage on a property in Australia.
There is also the other option of buying new apartments that are bigger but double the price of the smaller ones 100-120k as opposed to 50-60k.
But you would still make the 6.5% rental returns just have less apartments because of the cost. So instead of buying once every 18 month. I would
be buying once every 36 months.
3. Just buy here in Australia and pay off house as soon as possible.
I hope that makes some sort of sense. I have read that overseas property can be deducted from personal income in Australia. This is something
I don't have great insight in and would most likely need to have an accountant do my taxes.
What am I wanting out of all of this. To be in the best financial position in 20 years. Give my kids a good kick start in life.
So I am asking the wise investors on here what would be the better way to go? W
Been searching the net and it looks like I have found a great site!
I'll try and make this as short as possible and make sure to include the main points.
Basically I am trying to decide what the best way to make my money work.
I have some money tied up in a holiday house that will stay as a holiday house for now. I know it is not the best and would be better to rent it
out to generate some income, but not at the moment.
My current situation is I am renting and rent is costing me $25k a year.
I asked the bank about a bank loan and if we were to borrow around $350k (buy for $430k) the repayments would be pretty much the same as what
I am paying for rent now. I understand that the interest rates will rise in the future and it would be costing more to pay off the mortgage
as opposed to the rent I am paying now. But you also have the benefit of capital gains even if they are minimal.
Currently I have around $110k to play with. So I have thought about a few options.
1. Keep renting as is and buy apartments overseas around $50-60k each and rent them out and get a 6.5% return on them per annum. Once I have saved
up another 50-60K buy another one and keep adding properties to my portfolio.
2.Buy a house here in Australia and put down my $110k deposit. Keep repayments the same as if renting, and keep buying the apartments
overseas once I have enough funds. This will not allow me to pay off my mortgage sooner. But the trade off is that I have 6.5%
per annum returns coming in. And this return could be put forward to help buy more apartments. There would also be capital gains to be made
on these apartments and realistically I am thinking 2% per annum.
So really I could buy 2 apartments now and get the the 6.5% return using my deposit. This would not allow me to buy here in Australia as I
would not have a deposit saved up.
I could potentially be buying apartments overseas once every 18 months taking into consideration my income and expenses.
So in 10 years I could realistically have 9-10 apartments but still be renting here in Australia. Or have 7-8 apartments and be paying of a mortgage on a property in Australia.
There is also the other option of buying new apartments that are bigger but double the price of the smaller ones 100-120k as opposed to 50-60k.
But you would still make the 6.5% rental returns just have less apartments because of the cost. So instead of buying once every 18 month. I would
be buying once every 36 months.
3. Just buy here in Australia and pay off house as soon as possible.
I hope that makes some sort of sense. I have read that overseas property can be deducted from personal income in Australia. This is something
I don't have great insight in and would most likely need to have an accountant do my taxes.
What am I wanting out of all of this. To be in the best financial position in 20 years. Give my kids a good kick start in life.
So I am asking the wise investors on here what would be the better way to go? W