All Topics / General Property / When to start investing?

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of mrsimbamrsimba
    Member
    @mrsimba
    Join Date: 2004
    Post Count: 19
    July 20, 2004 - 12:22 am

    Hi All,

    Quick scenario to determine whether or not I am being too eager to start investing of if I should wait until my savings increase or there is more equity in our investment property.

    Owe $165k on investment property
    Mtge $170k
    Rental income $9000 pa
    Property valued at $220k
    Joint income of $100k
    Savings $5k

    My partner and I live within our means, we rent a property at $210/wk. We have no kids and no other debts.

    I’m really keen to start investing in property, however after reading a lot of the previous posts where investors have more than 50% equity, i’m not sure if I am being too eager with the little equity we have and little savings?

    Thanks

    Profile photo of yackyack
    Member
    @yack
    Join Date: 2003
    Post Count: 1,206
    July 20, 2004 - 12:44 am

    The key to property investing by Jan Somers is – buy when you can afford it (fix rates so you know pmts) and time in the market will be rewarded.

    Only you know the answer to the first comment.

    Profile photo of YorkerYorker
    Member
    @yorker
    Join Date: 2004
    Post Count: 306
    July 20, 2004 - 2:43 am

    Go for it!

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    July 20, 2004 - 2:58 am

    Speaking as a mortgage broker I think you are able to go ahead. It is realy up to your goals and strategy as to what you would like to do.

    What sort of price range are you considering here?

    All the best,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of mrsimbamrsimba
    Member
    @mrsimba
    Join Date: 2004
    Post Count: 19
    July 20, 2004 - 3:24 am

    Thanks Simon. Price range is as cheap as possible (preferably <50k, probably regional properties), oh and must be +CF.

    Profile photo of melbearmelbear
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    @melbear
    Join Date: 2003
    Post Count: 2,429
    July 25, 2004 - 11:17 am

    mrsimba, with that sort of income, and living expenses being reasonably low, you could afford a better class of property that may cost you a little each week to fund it, but that will have better growth prospects than a $50K regional house…

    If you haven’t already, I would look at making an offset account for your PPOR and have that $5K in savings working for you..

    Cheers
    Mel

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737
    July 25, 2004 - 11:37 am

    Mrsimba,

    They say that CF+ properties cost you nothing, so you can buy them in an unlimited way. If this is the case, then you needn’t worry about current finances, or other IP debt.

    I do think you need to account for expenses- mortgage expenses, rates, insurances, repairs, possible vacancies, etc.

    And not all people have 50 LVR’s, mrsimba. It’s likely that those with higher equity answered the question about how much equity they have.

    kay henry

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