Now ya talking

Have you spoken to your accountant about the capital gains event that is going to occur when you do this?

For everyones sake:

Please consult with your accountant before signing any contracts and be very skeptical about what the real estate agents' say to you.

I've had to deal with quite a few interesting situations due to clients taking the word of agents and not consulting with me first, a real estate agent writting something down on a piece of paper or the back of their business card 'does not', constitute advice 'and they know this', as they are not deemed to be a professional when it comes to the tax/cashflow implications of property transactions.

What do you guys think of Rivervale? close to CBD and airport, some nice modern townhouses for around 500k

Good spot - quality of the tenants/locals is a bit questionable.

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MY09 Evo X - 1.6bar@3500rpm - got lag?
Barbagallo - 56.03 (S); 1:08.09 (L)
Collie - 50.77
Possibly the most under-driven Evo X in the world??

Make sure you do the sums properly first and go in eyes wide open. Buying a property with debt means you need to make a capital return greater than the component cost of your debt and the opportunity cost of your equity. Hard to do in a market that has experienced such strong recent growth. The money is in re-development but you need cash up the kazoo at the moment to get kicked off.

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MY08 Liberty Tuned by STI Wagon

Err No?
Negative gearing?

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Balls.

capital growth is where you make the money/collateral/equity. As long as you research your purchase and can service it on an interest only scenario you are well on your way.

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www.racewars.com.au

I'll rent it

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MY93 Impreza GX 1.8L, 0hp, 0nm

Ollie,on interest only, buy the time you take tax advantages, depreciation and rental income into the equation even at only 6% capital return its pretty workable

I gotta buy one first Matt, Fred did quote this tho: "quality of the tenants/locals is a bit questionable"

haha nice. I have lived in Rivervale for ~12 months (with fozzy ...) its not a terrible suburb. Just buy me one with a two car garage, thanks

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MY93 Impreza GX 1.8L, 0hp, 0nm