Quote:
Originally Posted by danzvtil
the problem here is most investors go interest only for at least a decade meaning there will be no equity come retirement time.
Myself, I would love to buy again and add value thru renovations, but I simply don't trust the govt with negative gearing/land tax and increased compliance put on landlords.
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Great points, the first being to stick your hand in your pocket each week and actually pay off the property,
The second, to do capital improvements, you get better tenents and rent, and if the poo hits the fan you have a more saleable property,
Third, negative gearing, we have all heard hpw the gov are talking about getting rid of it, if you have an investment property they can't pull the rug out, (it would be like when they bought in capital gains tax, there were pre and post capital gains investment properties for years until a time was reached)
Start small, with a unit or cheaper house, if it works for your circumstances then use the equity to go bigger/more property.
Lots depends on where you are looking to buy also.
Don't forget, the government is a terribly run business, hence why we are so highly taxed, they will keep wanting some of your proffit, of change the rules to their advantage.