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Old 01-07-2014, 03:20 PM   #12
Golioth
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Join Date: Dec 2012
Location: Cairns
Posts: 65
Default Re: Investors or Business Owners

IMO if you do not own a home now is to get one quick, as paying someone else's mortgage off is to be avoided if possible.

Option 1 - Buy a newish established home that ticks all your boxes, rent out a room or 2 and pay off as much as you can while you make good coin.

Pros - Rent income, for your use when off swing
Cons - Flatmates have run of place when you onsite

Option 2 - Buy a newish established home that ticks all your boxes, give it to a estate agent to rent out and you can negative gear. ( Your wage + rental income less house expenses, rates, bank interest etc = lower taxable income)

Pros - Should allow you larger tax returns (lower income). Work dries up kick tenants out and live there

Cons - Increased purchase costs (stamp duty), dealing with tenants and agents.

Do not buy a old fixer upper.
Buy a practical house (use your head not heart)
Do research of where to buy
If building be aware of time takes to purchase land & build house (lots of downtime before use)

Good luck with your decision making!
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