belfastish Posted September 8, 2012 Report Share Posted September 8, 2012 Ive recently got into the mining industry in the past year earning more than i thought i ever would,mix that with living on camp with free room and food,2week on 1week off,no bills(just phone bill etc) ,no dept,i pay for rent just the week i return to perth in a house share. Ive got a little saving but within a year im wanting to buy an investment,probably a house!!i would like to put down $60-80k deposit before i buy. In oz i hear a lot of people who claim a lot of tax back on house investments but i dont know much about it,should i just keep saving?,buy a house and rent it out?,buy a new house to get 1st time buyers grant?,buy an old house and refurbish it on my time off? im wanting to have my house paided off within 10-15 years to avoid massive interest. Perth is now turning into a mining town and house prices are rising so im also thinking of buying in north brisbane and renting it out but traveling to brisbane to sort it all out may be a hassle. Im also interested in trying something different shares etc but again clueless!! any advice /experiences/things to be carefull off? Or should i buy a 10million baht 1 bedroom condo on suk rd Link to comment Share on other sites More sharing options...
Mekong Posted September 8, 2012 Report Share Posted September 8, 2012 Never listen to investment advice offered on internet forums. Link to comment Share on other sites More sharing options...
belfastish Posted September 8, 2012 Author Report Share Posted September 8, 2012 Never listen to investment advice offered on internet forums. Due to?? people who want to screw you over?people who dont want you to do well? im not going to go out and buy a house or invest from what someone says on a website,just interested on people ideas,experiences,do's and donts. i plan to save for another year or two before doing anything,just think its wise to start researching some things now!! surely this site is good enough group to give a guy some knowledge,wise thoughts?? But thanks for your advise mekong i also understand your post Link to comment Share on other sites More sharing options...
Mekong Posted September 8, 2012 Report Share Posted September 8, 2012 Belfastish, My advice was a little tongue in cheek but you know where I am coming from. As you mentioned in your OP you are aware of Tax Breaks and First time Buyer grants and possibly other schemes that are available in Australia and you were only asking if any posters have had experience of such but surely it is better to spend more time doing your own online research and then possibly go and see a couple of real estate agents to discuss your needs when armed with a few more facts. Usually they offer advice for free but even if they charge you AUS$ 100 for a consultation it is probably money well spent considering the size of the investment to be made. IFA's are the bane of my life, whenever I move to a new job there is always one on the phone within the fist few weeks asking to meet me, well if they want to meet over dinner and they pay be the bill I am happy to waste a couple of hours of my time with them. Always the usual bullshit sales pitch and I ask them all similar questions. Do You have this Scheme, if not how can you recommend it to me? You tell me you have over 30 years experience as a Financial Advisor, if you are so good why are you not retired by now? They soon realise they are getting nowhere with me. Anyway best of luck with your major investment, buying your first house is a major step in anyones life and you are right to be wary of entering into it without seeking advise from all possible sources. Link to comment Share on other sites More sharing options...
belfastish Posted September 8, 2012 Author Report Share Posted September 8, 2012 Belfastish, My advice was a little tongue in cheek but you know where I am coming from. As you mentioned in your OP you are aware of Tax Breaks and First time Buyer grants and possibly other schemes that are available in Australia and you were only asking if any posters have had experience of such but surely it is better to spend more time doing your own online research and then possibly go and see a couple of real estate agents to discuss your needs when armed with a few more facts. Usually they offer advice for free but even if they charge you AUS$ 100 for a consultation it is probably money well spent considering the size of the investment to be made. IFA's are the bane of my life, whenever I move to a new job there is always one on the phone within the fist few weeks asking to meet me, well if they want to meet over dinner and they pay be the bill I am happy to waste a couple of hours of my time with them. Always the usual bullshit sales pitch and I ask them all similar questions. Do You have this Scheme, if not how can you recommend it to me? You tell me you have over 30 years experience as a Financial Advisor, if you are so good why are you not retired by now? They soon realise they are getting nowhere with me. Anyway best of luck with your major investment, buying your first house is a major step in anyones life and you are right to be wary of entering into it without seeking advise from all possible sources. thanks Im trying not to get too involved in it yet,when i look at houses on the internet sometimes i get too excited and want to just buy a house,if i meet someone to discuss an investment i could very easily getting too involved. My plan is to save a good deposit first,chatting to workmates,friends and people on here to get an idea then when im getting closer to my deposit target seek a professial Link to comment Share on other sites More sharing options...
Redbaron Posted September 8, 2012 Report Share Posted September 8, 2012 Belfastish, Houses can be a good investment, have no idea about Perth but from what I hear it has been booming for some time. Not sure if you would qualify for a first home owners grant but if you do then even better, but I wouldn't make that factor the deciding one in buying a house. First home owners grant as far as I recall only applies if you live in the thing - no rentals/investment property. Some things to consider with houses - a lot of people are predicting they will actually go down in this country (again, not sure if this applies to Perth or wherever you are looking at investing). Being in the mining industry will you be subject to relocating at regular or irregular times? If so it may not be that easy managing an investment property. Lastly as I'm sure you know it's not liquid, if you predict you may need access to the funds locked into a property in the short/medium term, it would take months to see the money from a sale, and it may not be a good time to sell then. Having said that, I am sure there are plenty of people who manage their investment property from afar. The big tax breaks for investment homes I am no expert in, but I think you are referring to negative gearing, which involves a long term debt - not what you say you are after. Basically you claim your losses (including interest on the mortgage as tax deductions). Personally I am not interested in making losses. BUT a lot of people would claim repairs/renovations on the house they live in, against their investment property to further their losses/tax deductions but this is illegal. The aim is for the capital growth to outperform the interest rate losses.... I think. Personally I put all my spare cash into the Aussie stock market. It is relatively simple to do and online brokers such as CommSec, Etrade etc (most major banks have an online broker service, though CBA and ANZ's are looked at as the better ones) generally give you your first 12 or so trades free, after than a flat rate of $20 per trade if under $10,000 (if over it's about 0.2%). The past year or two the shares have comprehensively out performed house prices where I live, but the house market here has been flat, and shares have been recovering well from the GFC. I'm not into "day trading" or looking for the next big thing. I invest in simple, long term stocks which I know (hope) will grow over time, make regular budgeted contributions through my pay and re invest any dividends. Link to comment Share on other sites More sharing options...
belfastish Posted September 8, 2012 Author Report Share Posted September 8, 2012 Belfastish, Houses can be a good investment, have no idea about Perth but from what I hear it has been booming for some time. Not sure if you would qualify for a first home owners grant but if you do then even better, but I wouldn't make that factor the deciding one in buying a house. First home owners grant as far as I recall only applies if you live in the thing - no rentals/investment property. Some things to consider with houses - a lot of people are predicting they will actually go down in this country (again, not sure if this applies to Perth or wherever you are looking at investing). Being in the mining industry will you be subject to relocating at regular or irregular times? If so it may not be that easy managing an investment property. Lastly as I'm sure you know it's not liquid, if you predict you may need access to the funds locked into a property in the short/medium term, it would take months to see the money from a sale, and it may not be a good time to sell then. Having said that, I am sure there are plenty of people who manage their investment property from afar. The big tax breaks for investment homes I am no expert in, but I think you are referring to negative gearing, which involves a long term debt - not what you say you are after. Basically you claim your losses (including interest on the mortgage as tax deductions). Personally I am not interested in making losses. BUT a lot of people would claim repairs/renovations on the house they live in, against their investment property to further their losses/tax deductions but this is illegal. The aim is for the capital growth to outperform the interest rate losses.... I think. Personally I put all my spare cash into the Aussie stock market. It is relatively simple to do and online brokers such as CommSec, Etrade etc (most major banks have an online broker service, though CBA and ANZ's are looked at as the better ones) generally give you your first 12 or so trades free, after than a flat rate of $20 per trade if under $10,000 (if over it's about 0.2%). The past year or two the shares have comprehensively out performed house prices where I live, but the house market here has been flat, and shares have been recovering well from the GFC. I'm not into "day trading" or looking for the next big thing. I invest in simple, long term stocks which I know (hope) will grow over time, make regular budgeted contributions through my pay and re invest any dividends. My plan would be rent it out private for the 1st yr to get the home owners grant or just live it in the first year,then i would pay a real estate agent to rent it out and look after it for me. I am also thinking the prices will drop but i dont think too much,if/when the mining boom slows i think the prices will drop but this might all even out even if i bought now and have someone paying the rent im chipping money off the value.I think its good to have a house to fall back on,to sell when i retire if i want,an asset:) Link to comment Share on other sites More sharing options...
Redbaron Posted September 9, 2012 Report Share Posted September 9, 2012 Go for it mate, but as I said, I wouldn't make the grant the sole or major reason for as to buying a house or not. What is it now? 5 or 6 grand? Not a lot as a % of a 2-3-400,000 dollar investment, especially as if prices drop by as little as 5% the grant value would evaporate. Link to comment Share on other sites More sharing options...
Coss Posted September 10, 2012 Report Share Posted September 10, 2012 Buy high land next to the sea, or gold. Link to comment Share on other sites More sharing options...
belfastish Posted September 10, 2012 Author Report Share Posted September 10, 2012 Now ive def made up my mind,im going to save at least 100k before signing up to a house,a guy from work went to see about a mortgage,borrowing $500k(putting down a 50k deposit) he will pay back about $900k after 30yrs. People dont seem to see that they are paying interest for about 13-15years before even touching the house payments,even if the house price goes up you still lose in the long run. Im hoping to pay a house off in 5-10 years,well thats the plan:) Link to comment Share on other sites More sharing options...
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