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Steve | 11 Sep 2013, 11:00 PM Agree 0
Hi All .We ,as in my partner and myself have two properties ,one being her`s which we live in and has a mortgage of $196000 fixed i/p ,repayments are $616 per f/night (property valued at $320000) property 16y/o and mine which is an older property but has no mortgage and is rented for $170 p/w the value is around $200000 .its in a area with minimal growth and needs a small amount of TLC .We are a one income family and l earn approx $85000 p/a .l wish to know if this senerio will work for me purchasing more properties and if l should put them in my name for tax purposes. Thankyou
  • Eos Property | 12 Sep 2013, 09:26 AM Agree 0
    Hi Steve,

    Quickly looking at the numbers, and on the limited information provided, it would appear as if you could invest in more property. I would certainly speak to an informed mortgage broker and ask them to run some numbers for you. They will also be able to let you know which type of investment property is going to help your further investment plans (growth or cashflow) - looking at your scenario I would suggest any investments should have a strong cashflow component to them.

    Other points
    1. Given you are the sole income earner any future purchases should be weighted in your name. While tax saving should not be your primary focus you might as well make use of any advantage you have.
    2. It may also be advisable to consider some sort of trust arrangement - this will allow income sharing within the trust.
    With both of these points you will need to speak to a savvy accountant for specialised advice.
    3. I would give serious consideration to undertaking the TLC to your existing property. Properties are a little like motor vehicles - look after them and they run better.
    4. Make sure you are getting market rates for your existing property. Every little bit helps and some investors allow their rents to fall behind for fear of losing a tenant. Ask your property manager to give you an update on rents in the area. You can also do a rent search on to see what is currently available in the area.
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