Discombobulated like many would-be investors
I want to preface this — I don’t expect anyone to pity me. My situation is good but like a lot of Sydneysiders I have a big pile of debt to pay for the privilege of living here. I am asset rich, cash poor, so have been thinking of the various ways to drive down my large debt, particularly as I am not well and don’t know if I will have as long a working career as others.
I am 34 and own around $2mil of my property which is worth approx $3.5 mil ($1.5 mil debt).
I am renting the property out for the next 12 months for about $1600 a week. Negatively geared, not paying rent elsewhere. Using 6 year rule. All good.
Hoping to save a fair chunk (around $250k). I was originally hoping to buy an investment apartment towards the end of the year. But, given we are in a high interest rate period and negatively gearing will not be possible, am I better off just keeping money in the offset and renovating my house?
I am not interested in buying a new property or off the plan even if they are now more tax friendly. A. It’s risky B. They don’t tend to appreciate as well — you buy at a premium C. The quality often sucks D. I wanted to buy an art deco apartment in a small block that needed cosmetic work w/ low strata
Should I just wait to buy an investment later when I have enough of a deposit for it to be positively geared? Or to hell with property?
I will see my accountant in July for professional advice bur wojld appreciate any ideas from this brain trust.
Peace out my friends ☮️
PS. If the budget has a material impact in driving down inequality it will be a good thing and I can survive the hit. However I say we tax the uber wealthy Ginas and Clives and make childcare free like in the Germanic and Scandi countries. Now that would unlock productivity and a half