Hi all,
I am a new user from the UK and just like to say thanks to everyone who contribute to this board – good or bad.
Can anyone help me with these nagging questions, my background is Bricklayer, handyman, opportunist,
I know that this is hard to give advice, as I don’t think that many of you’re a financial wizards.1.Arrive in OZ in July on a PR visa with wife 3 kids + approximately $400,000, do I spend most say 300,000 in a reasonably nice area, some relatively consistent capital growth and don’t worry about a mortgage etc, my only concern is that I will be limited to areas around this price band, seems the safest and for security seems the best thing to do.
Below, this is what I would like to do, so advice would be appreciated.
2.Arrive in Oz(Perth) but my aim is for capital growth long term.
We put our funds in an offset account to start with, arrange for a loan of say $450,000, put down a deposit of $100,000+ deposit security on the loan and drip feed the payments of say $1800 P/M.
This would be our family home, long term anticipated.
The benefit for me is that I can choose a better location for the children and us and also achieve some high capital growth also over a long term, the area in which I am considering has some historic growth figures and has achieved some 130% in the past 5 years, I am not saying that these figures will continue, but I want to use my funds in an effective manner.
Advice welcome,
All the best
Mark[
]Hi Mark,
If I was you I would put all the money into your own home and then use the equity to purchase an investment property.
How many investment properties you buy will be dependent on your income and comfort level. For example if you purchased an investment property for say $300,000 and you had a taxable salary of around $35,000 then the investment property might only cost you around $65 per week. Should your taxable income be around $65,000 then that same property might only cost you $25 per week.
If living in Perth though, I would probably suggest you invest in either Melbourne or Sydney for consistently better capital growth.
Hope this is of some help.
Anthony
Gday Mark,
You said Perth, thats great, hope I can sway you to move around the Bicton/Ardross area. Its a great location, right on the swan river.
With the equity youve got, if you do pump all of your money into a house, you can then get an equity loan (line of credit), to then be able to purchase a house in a more preferrable area. The interest you would be paying on a line of credit would be minimal compared to a standard mortgage and drip feed set up.
You said you had found a suburb with historic figures of 130% in 5 years. Where is this?
There are those that LET it happen, and there are those that MAKE it happen!!
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