Hi all,
Got some options I'm currently looking at to get into the property market in the next year or two which is when I will have enough saved for a 5-10% deposit.
My situation. I'm a single 23 year old who relocated to Gladstone for work after living in Adelaide pretty much my entire life. I currently earn just under $80k (gross) p.a, live in shared accomodation, and there's a good chance that my company will relocate me again to Melbourne or Brisbane (where the company's main offices are) within the next couple of years.
In the longer term, I am looking to establish a balanced property portfolio with a good mix of property types, location, capital growth and cash flow.
However, to get started on property uno I am currently looking at the following options:
1. Purchasing a property as a PPOR, claiming the FHOG and taking on lodgers for the spare bedrooms.
2. Forgoing the FHOG and going straight into buying an IP before purchasing a place as a PPOR.
Buying in Gladstone will quite possibly be out of my price range by the time the next year or two comes around. I have, however, been watching the markets in the Mackay and Townsville regions over the past few months.
Are there any other options that I may have missed that could be suitable for my situation? What are the pros and cons of each option that I have mentioned or anything I should be aware of? I realise that taking on lodgers will have implications on the tax deductibility of interest payments and CGT, and that undertaking option 2 will probably require me to have more saved up and take longer to do.
Thanks!
Got some options I'm currently looking at to get into the property market in the next year or two which is when I will have enough saved for a 5-10% deposit.
My situation. I'm a single 23 year old who relocated to Gladstone for work after living in Adelaide pretty much my entire life. I currently earn just under $80k (gross) p.a, live in shared accomodation, and there's a good chance that my company will relocate me again to Melbourne or Brisbane (where the company's main offices are) within the next couple of years.
In the longer term, I am looking to establish a balanced property portfolio with a good mix of property types, location, capital growth and cash flow.
However, to get started on property uno I am currently looking at the following options:
1. Purchasing a property as a PPOR, claiming the FHOG and taking on lodgers for the spare bedrooms.
2. Forgoing the FHOG and going straight into buying an IP before purchasing a place as a PPOR.
Buying in Gladstone will quite possibly be out of my price range by the time the next year or two comes around. I have, however, been watching the markets in the Mackay and Townsville regions over the past few months.
Are there any other options that I may have missed that could be suitable for my situation? What are the pros and cons of each option that I have mentioned or anything I should be aware of? I realise that taking on lodgers will have implications on the tax deductibility of interest payments and CGT, and that undertaking option 2 will probably require me to have more saved up and take longer to do.
Thanks!