I am a 26 year old female with a secure government job, I earn $53,000. I have just purchased my first home in Western Sydney for $320,000, my mortgage repayments are about $890 per f/n. So far I have re-painted, polished the floorboards, installed a new kitchen, and new air-con in the lounge room and master bedroom, all up I have probably invested $20,000. I have lived in the home for 12 months, and I rent out 2 bedrooms for a total of $325 per week (Including bills).
My dilemma is this: I have worked hard to secure the house which I hope in the future to turn into an investment. It doesn’t feel like my own, and I am sick of living with other people. I am thinking of renting an apartment and, renting my whole house out instead of sharing. I believe I could get $320 - $350 p/w for the house, however this would match what I myself would pay in rent. At the moment I have very little disposable income with all of my money pouring into fixing up the house. My long term goal is to secure investment properties for a good future; but I am extremely unhappy with my current living arrangements.
Q1: Is it financially viable for me to rent out my house, and me rent an apartment somewhere else?
Q2: Tax time is coming – do I declare the rent from my roommates for the purpose of claiming the tax incentives (Interest on loans etc) – I don’t know too much about this area – or do I just keep the cash in my hand?
Q3: What is the best way for me to move on and up from here?