Join Australia's most dynamic and respected property investment community

Hello from Brisbane!

Discussion in 'Introductions' started by Ana Mannella, 8th Feb, 2016.

  1. Ana Mannella

    Ana Mannella New Member

    Joined:
    8th Feb, 2016
    Posts:
    3
    Location:
    Brisbane
    Hi everyone! My name is Ana, me and my partner are very new in understanding the property market, we actually only started to take interest in the possibilities from 2-3 months ago despite owning an apartment in Brisbane that is giving us returns already and which is paying for our current and very expensive RENT, yes RENT, stupid i know ;) ! Now after understanding a bit more of our situation and have researched and study a little bit of the investment property market, we are starting to build a plan that suits our budget and will take us to a better position. Anyway, I am going to be asking for insights, opinions, thoughts etc in another thread as this should only be for introduction ;) Thank you so much everyone, hope to learn lots from this community :)
     
  2. MsAli

    MsAli Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,147
    Location:
    Sydney, Australia
    Hi Ana

    Renting is better from an investment (tax and lending) perspective. Each to their own though. It is likely to work in your favour in particular with the tightening lending in the last 12 months.

    Welcome to PC.
     
  3. Bran

    Bran Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    3,217
    Location:
    At work
    Many of us would be better off renting than living in our PPORs.
    When did you buy your apartment, and where is it?
     
  4. Ana Mannella

    Ana Mannella New Member

    Joined:
    8th Feb, 2016
    Posts:
    3
    Location:
    Brisbane
    ohh really? gosh we do have so much to learn!! The apartment was bought in 2012 in Hamilton, it wasn't a good buy but it is actually been totally paid off and left us at this really good starting point!! we are renting just a few blocks from the property because we love the area and my boy has school and friends etc around here, but we are thinking that this money should be better applied other than just being giving it to someone else as rent!! we are actually inclined to find an older property to buy, move into, renovate while there and sell it after? we are researching the north suburbs, Nundah, Hendra, Clayfield, Northgate... ! :)
     
    DiligentPM likes this.
  5. chindonly

    chindonly Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    336
    Location:
    Brisbane
    There's your problem. If the IP is paid off, there is no deductible debt. The rent you recieve is adding to your income and is taxable.

    Ideally, you would have put your savings into an offset account against the IP, or used it to earn more money in other ways. Then you could have pulled it out to buy a PPOR and still have an investment loan running.

    Still great to have it paid off though. Suggest you sit down with a good broker to discuss future plans.
     
  6. DiligentPM

    DiligentPM Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    443
    Location:
    Brisbane
    Welcome to the Forum! You will learn a lot here as there is a broad base of expertise
     
  7. Bran

    Bran Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    3,217
    Location:
    At work
    You might need to think about ways to get your IP money 'back' if you are buying a new PPOR.

    Other options that will impact your cash-flow and deductibility to consider might be:
    Moving in to your 'IP'
    Redrawing your IP equity to buy other investment properties (you can't efficiently do this for a PPOR - interest will be non-deductible)
    Selling your IP, using that cash to buy your next PPOR
    Etc

    Have a good read about apartments in Brisbane and their predicted trajectory

    Enjoy the forum :)
     
  8. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Welcome @Ana Mannella and wow, well done on paying off your first property! You look very young. To have an unencumbered property is going to put you in a very strong starting position.

    You'll learn an enormous amount reading here.

    Depending what your property is worth, you will have somewhere between a reasonable and a substantial amount of equity as starting capital (pending your serviceability–chat to your broker about this aspect).

    Things look pretty good for your future.

    Read lots, ask heaps of questions, connect with some investors on this forum (everyone is surprisingly friendly) and most importantly...get clear on your goal. What do you want to achieve buy investing in property, and when? :)
     
  9. RPI

    RPI Property Lawyer, Town Planner Business Member

    Joined:
    19th Jun, 2015
    Posts:
    712
    Location:
    Brisbane
    Hi and Welcome

    Renting can be great, and if you can get over the emotional living in your own house thing then it can work very well.

    Sounds like you are in an awesome position and if you spend some time reading on here and somersoft you will be in an even better one.
     
  10. Ana Mannella

    Ana Mannella New Member

    Joined:
    8th Feb, 2016
    Posts:
    3
    Location:
    Brisbane
    thanks everyone :) i will definitely be reading all I can and doing a lot of research. I still can't get my head around how the numbers work but i guess I just need to study some more. Thanks again :)
     
  11. Redom

    Redom Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    859
    Location:
    Sydney (West) and Canberra
    Welcome Ana - great starting position to be in.

    Nothing wrong with renting, and definitely having an IP completely paid off is a good starting position.

    Theres a rich source of information on these forums - you'll learn more about the:
    • Benefits of renting (assists your borrowing power for any investing plans).
    • Costs/Benefits of not having any debt on your IP and the taxation consequences.
    • Markets in general - this forum loves Brisbane right now! :)
    • Lots more!
    All the best. :)

    Cheers,
    Redom