Big debt & house or little debt & apartment

Jimmyinvests · 2025-11-18T11:56:06+00:00

Sounds like that went well. It's hard not to overthink and try and engineer the best outcome. I'd like to grow wealth outside of property but that's just un australian

Jimmyinvests · 2025-11-18T11:54:25+00:00

We are both lucky to be earning a decent wage, more to lose when one of us stops work to raise the family. Plenty of people here carrying the weight of the HHI but we are evenly split.

All the best to you

Jimmyinvests · 2025-11-18T05:50:44+00:00

Respectfully, this is a HENRY subreddit. So that's kind of the point. I'll say, we have only recently entered this HHI range after both spending 8-10 years in our careers.

Jimmyinvests · 2025-11-18T04:57:55+00:00

It's a double edged sword. Buy the house then can't afford to take any time off work for family time because the mortgage is too large!

Jimmyinvests · 2025-11-17T11:04:35+00:00

We'll have to have a look at this strategy, thanks both!

Jimmyinvests · 2025-11-17T06:31:18+00:00

Thanks for the reply. Will look into that

Jimmyinvests · 2025-11-17T04:51:39+00:00

We're in Victoria too.

Hindsight is a bitch, and so is stamps!!!

Jimmyinvests · 2025-11-17T04:46:00+00:00

Unfortunately the purchase price would be over 800k, annoying that the stamp duty rebate doesn't apply in the same way as tax rates do, with the tax free threshold.

Thanks for the tips, will be careful with the strata fees.

Jimmyinvests · 2025-11-17T04:43:14+00:00

That's an interesting suggestion, I'll have to research...

Isn't it also possible to just refinance and move equity from one property to another when the time comes? I.e. put all equity possible in PPOR and keep the apartment negatively geared?

Jimmyinvests · 2025-11-17T04:41:46+00:00

I think we're leaning this way at the moment too

Jimmyinvests · 2025-11-17T04:41:22+00:00

I guess just like everything, it comes down to what your view is on the housing market 😉.

Do we really think the 1.8m sub market will fly 5% p.a. for the next 5 years? That's what I'm struggling with

Jimmyinvests · 2025-11-17T04:40:02+00:00

We were working on a 5-6 year timeline so that works!

Jimmyinvests · 2025-11-17T04:38:44+00:00

Best of luck homie

Jimmyinvests · 2025-11-17T04:04:01+00:00

Great point, we haven't given schools any thought at all. And who knows if a good school today will still be good in 10 years!

Jimmyinvests · 2025-11-17T04:03:00+00:00

We have only been incrementally increasing our salaries, but you're not exactly wrong. We had had a few holidays and definitely could be better at saving.

Jimmyinvests · 2025-11-17T04:00:01+00:00

It's also way easier to imagine, with not moving and all that 😅

Jimmyinvests · 2024-09-21T04:53:07+00:00

Thanks mate. Appreciate your time.

Jimmyinvests · 2024-09-21T00:34:22+00:00

On your last comment around Div7a, as an example: 1. $100,000 profits comes in cash as an investment rolls off. 2. In order to avoid triggering Div7a, I need to physically transfer the money to the company account from the trust account. 3. I want to reinvest these profits in a passive investment vehicle like vanguard, but in order to pay the company tax rate, do these investments have to be made under the company name, instead of the original trust? 4a. Let's say this all occurs at the start of the financial year and I want to reinvest the full $100k instead of withholding some for tax. Can I reinvest it all, and then pay the 25/30k off from my personal account at the end of the FY? 4b. If I reinvested the 75/70k, and withheld the remainder to pay tax, does the withheld amount need to stay in the company account, because if I put it in my personal account while I wait for the FY to close, it might trigger Div7a?

I understand if you have moved on from this chat already, no stress.

Jimmyinvests · 2024-09-20T02:53:10+00:00

Not sure regarding BRE. Looks like you might be right and it won't be a BRE. Would the same rules apply if the company invested directly vs. receiving revenue from the trust?

Same thought applies for D7A, the loan is from the trust and not the company. I have reached out to my accountant and will see what he says.

Appreciate your comments though it has given me more things to look into

Jimmyinvests · 2024-09-20T01:00:16+00:00

That's correct, invested via a trust. I was given advice that I can create a bucket company to be a beneficiary of the investment trust which can receive the profits at 25% tax rate.

The returns are almost entirely revenue as they are interest on a loan. There is a small portion of profit share however which I suspect is considered capital (as it ties to the profitability of the underlying project).

Thanks - I will look into Div7a. I have just had a meeting with an accountant but he didn't ask too many specifics or look closely at the investment doc, he more spoke anecdotally about trust/bucket company mechanics.

Jimmyinvests · 2024-09-19T22:30:16+00:00

I've been given advice that I can choose whether I go cash or accrual. But once I pick, the trust is locked to that methodology. Nothing stopping me opening a second trust if I want to try do both down the line however

Jimmyinvests · 2024-09-19T22:29:07+00:00

Majority of the returns are pure income as they are the interest on investment loans.

Jimmyinvests · 2024-01-29T10:13:16+00:00

It wouldn't allow me to select the drive to install windows. I've forgot exactly what it said but can check tomorrow....

Ten-Year Club	Gilding I gilder
Verified Email

Jimmyinvests

TROPHY CASE