as I am fairly computer illiterate a question first. How do we find our last post? I just scrolled forever and couldn’t find last message I put up re buying regional properties. Still worries me that in five years if I want to sell there will be no capital growth, thus maybe no purchaser. Also what is the main thought on paying interest only as opposed to interest and principle. Steve seems not to go into this in book. Also are there any Perth people here that have a club or some thing going. I need loads of advise, and live in Mandurah. I’m 57, have one negative geared prop, and really need to move on to + before I have to give up work; any replies I thank you in advance. finaly ow far from city is it feasable to buy, and should one buy in a rather dead town, but one which still needs rentals? Thanks again. Trish
ePatricia,
Regarding Interest only let me suggest that it is really up to you. If you like the thought of paying off the debt then that is OK.
If you own a home with a mortgage then I would suggest you pay both lots of principal payments onto the home loan. This is more tax effective.
One idea is to pay IO and put an additional sum into an offset account. Use this to save your next deposit for your next property.
Hope this gives you something to think about.
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Trish
i agree with Mortgage hunter. RE loan repayments.
regarding country investing.
i don’t know the WA market so some general comments
make sure where ever you buy there is a strong rental demand. you want the property rented. In Vict country areas have had more Capital Growth than Melb. can this continue ?
i think it can
1 return of people to country areas (supply and demand), growing population will push up prices.
2 i feel the Govt will soon encourage or legislate that some people (ie Immigrants ) move to regional/ country areas.
westanThanks for that part of the question Simon. I don’t have a mortgage on my home, and after buying half a unit with my sister, and a small rental in the country (bad planning it is negative,) I now have about 170Ks of equity left, so I guess I could, if I can find them, buy two or three rentals on 100percent loan.Not sure how the offset would be effective on an interest only loan? I’m pretty hopeless with money, just know I have little or no super and want to have at least 35-40ks when I give up work.[
]cheersHopeless with money…You sound like you are doing fine – plus you are planning to do more.
100% loans should be OK with your equity.
Well done.
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Patricia
Welcome to the forum, two things; first I would not finance 100% with that much equity, you would be wasting it. Use the 170k for 20% deposits on more than one property of course this is best if the properties are +cashflow.
Work out what your goals are that will help you to determine your future strategy.
Second, Most of the points you asked about in your post are very common questions and more detailed answers can be found by using the search function located at the lop of this page. Check it out and if you can’t get the answer you are looking for then post for more info.
Cheers
Leigh K[]Read, learn, grow but most of all do it.
PatriciaWelcome to the forum, two things; first I would not finance 100% with that much equity, you would be wasting it. Use the 170k for 20% deposits on more than one property of course this is best if the properties are +cashflow.
Work out what your goals are that will help you to determine your future strategy.
Thanks for message, but I am not quite sure what you mean. How can I use equity to put down a 20% deposit?Second, Most of the points you asked about in your post are very common questions and more detailed answers can be found by using the search function located at the lop of this page. Check it out and if you can’t get the answer you are looking for then post for more info.
Cheers
Leigh K[]Read, learn, grow but most of all do it.
Enjo Lady,
I wasn’t clear enough. When I referred to finance 100% I meant finance 20% from current equity and an independent 80% lend against the IP exactly as you suggested.
Patricia,
This strategy involves borrowing 20% against your home or other IP if there is sufficient equity and then the remainder against the new property.
Hope this helps.
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
]cheers
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