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My wife and I have following assets.
- house (worth 380k)
- investment house (worth 550k - owe 120k)
Wife earns 120k and I earn 100k
We understand we need to reduce tax.
Buy an investment property ? Shares ? Mixture of both ?
Pay off existing investment property?
Don't know which way to go.
01 September 2015 |
JacksonfromBellbowrie , Brisbane, QLD
I’m not sure what tax you’re referring to (income tax, capital gain tax, etc.) but looking at your asset and income position you’re not actually paying that much tax - average tax on $100k is 26%. It’s very common people start making their investment decisions with a tax in the driver’s seat. But it’s only a question of time before that car will crash.
Therefore, I'd start with an advice - never start with tax, I’m not saying to ignore it, but you have to start at more important decisions. The reason why you’re confused about what to do is because haven’t start at the beginning - What are we investing for? What’s the end goal? What lump sum we need to accumulate? How much income does the investment need to generate and for how long?
I suggest you seek quality advice from an experienced financial coach who will have these conversations with you and who will offer you leadership by asking hard questions you’ve been trying to avoid answer for a while now.