new house/land package in Sydney as long term portfolio plan (first home buyer)

Discussion in 'Investment Strategy' started by stovebyo, 30th Apr, 2020.

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  1. stovebyo

    stovebyo Member

    30th Apr, 2020
    Hey guys, I’ll try to keep it as brief as I can. Looking for feedback on this as a general strategy.

    I’m a FHB looking to buy once this covid mess settles down. Plan is to generate a portfolio with passive income, not dependant on capital growth.

    I’ll be working in Sydney for probably a couple more years, so looking at buying a new house/land package in the burbs.

    Live in it as my PPOR for six months to satisfy FHB incentives (Stamp duty exemption, $10k grant).

    Then switch it to an IP and rent elsewhere in Sydney or greater NSW.

    The depreciation deductions (being new) look like they’ll help a lot.

    Then buy another property in the next few years after that.

    I’m thinking a budget of $650k in order to take full advantage of the stamp duty exemption, even though we could probably service more.

    I make $115k, my partner makes $90k, we have $140k+ in savings and inheritance, and our only debt is HECS. Very stable jobs.
    We’d like to live out of Sydney (in NSW) one day, and my work will allow for that, but not for a couple of years.

    Sorry if any of this seems silly. I’m very new but very interested! Thanks so much