Hello, this is my first time to the forum.
I own a two bedroom home which is bringing in more rent than mortgae repyaments. But my question is, what do I do with that ‘extra’ money. Do I put it in as extra money to the mortgage repayments, or just use it to spend??
Any advice here would be great,Thanks
George.
It’s your money…
What are your plans? I think that in this forum you should expect to be advised to save it towards your next property.
Do you have a home? If you have a homeloan then putting it into an offset against it is a good idea.
Best of luck,
Simon
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Hi George
i’d advise you to work for you lifestyle but build your property potfolio as your wealth. Any profit either pays off the loan or gets reinvested in another property or shares etc. If you start spending your prodits you will be working till your 60+, but having a higher standard of living. i’d rather delay the temptation and build for the long term but its all a personal choice. You Need a plan !
regards westanId agree with Westan. In Steves book he shows what he does with the surplus, but there are many options…(from memory) he splits the surplus into 3, the first 3rd goes back into the Investment to keep the tenants happy, and to add to the value of the property. The second 3rd is used for Investing in the Sharemarket. The third 3rd is used for new Investment Properties.
You could always divide it into 4 parts and use one for personal enjoyment/spending.Just a thought..
[
]Regards,
Arty.[
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“Why work to the age where you cant enjoy
what you have worked for !.” (Author: Me)Thanks for the advice guys but to extend that further…
You say I need a plan. Currently my home is returning only about $55 dollars a fortnight in profit from the rent (rent – mortgage). It is worth approx $180k with a $90K mortgage.Where to from here??
Hi Georgei’d advise you to work for you lifestyle but build your property potfolio as your wealth. Any profit either pays off the loan or gets reinvested in another property or shares etc. If you start spending your prodits you will be working till your 60+, but having a higher standard of living. i’d rather delay the temptation and build for the long term but its all a personal choice. You Need a plan !
regards westanThanks for the advice Weston but to extend that further…
You say I need a plan. Currently my home is returning only about $55 dollars a fortnight in profit from the rent (rent – mortgage). It is worth approx $180k with a $90K mortgage.Where to from here??
scooter,you say you have 50% equity in your investment property and it is positively geared so wouldnt now be the time to invest in another one,if you are worried about interest rates just get a fixed loan. kimberley
Hi i think it is great that you have got your first property and that it is making you profit, congratulations. i was just wondering how old you are and how you went about getting your loan, what type of loan did you get. i am looking to buy my first investment and am looking a similar places like the one you have bought. any advice you could give me would be great. thanks
Hiya George,
Star by spending half & saving the other half, then after a while spend a quarter & save three quaters. Then before ya know it Saving it becomes second nature. Take small steps at a time !
Make it as simple as possible but no simpler. (Albert Einstein)
Good Luck
Michael
just be
Hi i think it is great that you have got your first property and that it is making you profit, congratulations. i was just wondering how old you are and how you went about getting your loan, what type of loan did you get. i am looking to buy my first investment and am looking a similar places like the one you have bought. any advice you could give me would be great. thanksI am 23 yrs old now but actually bought the house when I was 22. To get the loan I just went to a couple of banks to see how much (if any) they would lend me. As it turned out, the second bank I went to helped out. I was a low income earner and had another debt so was very lucky to get started. But once I got the break, everything has worked out well. The loan was just an Easy Start from ANZ (1 per cent lower than their current % rate). Don’t really have any advice but just look in real estate guides, internet etc, so you now the approx price of diff types of homes so you can spot a bargain. Goodluck!
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