Hi! + Newbie Question

Discussion in 'Introductions' started by Kevz, 27th Jul, 2017.

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  1. Kevz

    Kevz New Member

    Joined:
    27th Jul, 2017
    Posts:
    1
    Location:
    NSW
    Hi PC!

    I've been a lurker for a while and I have been researching for a new property for the last 8-10 months. This site is a goldmine with all of the different insights and journeys people have taken!

    I have a question for anybody willing to give advice to a newbie investor! With the NSW Stamp duty exemption, is it worth buying my first IP in Sydney? Being a Sydney-sider, it makes me more comfortable to buy in an area I know. However I also know that Sydney is at a peak at the current moment and it doesn't make sense to me to buy after a peak.

    However, with the stamp duty exemption, if I was to go interstate, I feel like the first/second year growth will just be making up the stamp duty exemption benefit I could have received at NSW. My budget is around the 500k mark.

    Thanks for all of the insights!
    -Kev
     
  2. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    Personally, I wouldn't let stamp duty exemption be the deciding factor for a deal. I would want to buy in a state which is at an advantageous part of a cycle, try to buy BMV and something potentially that has room to add value. That's just what I would do. You need to decide what's right for you.
     
  3. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

    Joined:
    31st May, 2016
    Posts:
    2,738
    Location:
    Australia
    @Kevz - I can understand how you feel about the stamp duty concessions. Though as you know Sydney is at peak

    Though being a devils advocate, people will always need somewhere to live. Home is a very personal and lifestyle decision. Depending on your ability to borrow combined with the use of post tax dollars sometimes it can make sense to buy a home. With the borrowing being much tighter make sure you do your numbers on home first or investment property purchase first...if you go down the IP route, can you go the other way round later on without having to incur selling costs for an IP?

    No right answer. Simply what do you want to achieve and what's more important to yourself.

    Also remember with a home and correct lender selection you can adopt strategies to minimise non tax deductible debt and turn it into tax deductible debt for further investment.