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First home owner / property investor questions

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hasel | 06 Nov 2014, 05:05 PM Agree 0
I have about A$150k saved up to put into the deposit/fees for my first property. I'm new to this and would like some opinion.

1. As most of my salary goes into a savings account, i have been paying way too much income tax in the past years (i am single, have no deductions/offsets/dependants). Is buying a property a sensible means to reduce the amount of tax i pay? Or what are the other things that people do in a situation like this?

2. And if i do purchase a property, is it better for me to live in it (and rent out the other bedroom(s)); or rent the whole property out and rent my own? I am in the midst of finding out more about negative gearing.

3. There is a possibility that i may move overseas in the next financial year or so. So i would possibly be paying tax on the rental gains (assuming that i may make some). When i am overseas, i might also have to decrease my mortgage repayments as most likely i won't be earning a comparable income to what i'm getting here. Would it then make sense for me buy now/here? I live in Canberra at the moment.

As you can tell, i'm just starting in this area so please bear with me for any 'stupid' or 'obvious' questions. Any comment/advice is greatly appreciated! Before i go to an accountant...

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