First Time Buyer Questions / Strategy

Hi all,

Any feedback is much appreciated, hope this is the right thread.

Have been looking seriously for a couple of months and found something I want to pull the trigger on.

Loose Strategy = We were priced out of long term PPOR (3 bed house 670k 2 years ago is now 1.2m) so our plan is to buy unit in region we want to live, within budget, move in for 12 months, move out to cheap rental or free accom on parents property - rent out unit and continue to build our income / deposit for PPOR in 3-5 years.

Is this a sound strategy?
Is it within 7 years we can hold this unit and sell CGT exempt providing we don't buy a PPOR in the meantime?
When we move out and lease the unit, do we have to change our loan structure?


The Unit - 5 mins from beach, opposite golf course, block of 8 apartments, close to shops, 2 beds , 2 story with outdoor patio, 1 car space, brick.

Calculation help - In my spreadsheet, I have a rough formula which includes mortgage repayments, strata, loan fee, council rates and contributions to an emergency fund of $100 per month.
From my calcs it would be negatively geared approx $80-100 out of pocket each a week.

Anything else experienced would factor in?

Thanks.

 

What is the impact after tax?

 

I'm not sure, what are the impacts? Reduced tax from negative gearing? or do you mean impacts on take home pay after tax?

 

Following. Is this example CGT exempted?