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centennial | 24 Oct 2014, 03:44 AM Agree 0
Today I came to know about this site while browsing through another Aussie property site. We are moving from London to Sydney on PR visa by end of year. During my recent trip to Sydney I was shocked by looking the property prices and decided to turned to you all wonderful people for some suggestion. We (couple) are skilled professionals and should get job easily in Sydney but not sure about securing the mortgage which is enough to buy property there.

Someone mentioned about investment properties and the claims we can make to reduce our income tax. Not sure if I got that right. Could someone please sugeest what are advantages of having a investment propertes in the Sydney. We will be coming with around $400000 so please suggest some investment properties in this range.

Any pointer will be really helpful.

regards,
Sandy
  • Mark Coburn | 28 Oct 2014, 04:50 PM Agree 0
    Hi Sandy,
    You will have little problem securing finance to purchase once you get here, providing you have good jobs and employment contracts. The Australian property market comes as great surprise to a lot of overseas investors we deal with. The main concept to work on is investing for capital growth first and yield a close second. I wrote an article that focused suburbs that fit this subject in last months Your Investment Property mag if you have a copy or you p.m me and I will send you a copy.

    Your $400,000 should be able to fund a couple of investment properties while still keeping your loan to value ratio modest. At todays interest rates (<>4.90%p.a.) your properties will be positively geared (making a small profit) after tax credits are accounted. Sydney is not likely to be a great investment location for a few years after the tremendous run it's had over the last three years. Brisbane's Fortitude Valley & Griffin area is starting to take off now and Melbourne is a few more years away at the moment. Perth is still nearing the bottom of it's cycle too, but it will be a few more years before it starts growing again.

    I hope this helps, let me know if you have any more questions.
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