Just wanted to make sure I was getting the idea right for P.I.
*Using cash for downpayment of first I.P
*first I.P appreciates
*Draw down on free “equity” (free money) after appreciation
*Use the free “equity” as downpayment of second I.PIs this correct?
Thats pretty much it.
However stage one can see cash substituted with someones else’s equity (check legal ramifications first).
And step two can be hastened through renovations and/or paying down some of the loan.
Ultimately the exact chain of events is determined by your individual plan and position.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping.
Originally posted by FireCaesar:
Just wanted to make sure I was getting the idea right for P.I.
*Using cash for downpayment of first I.P
*first I.P appreciates
*Draw down on free “equity” (free money) after appreciation
*Use the free “equity” as downpayment of second I.P Is this correct?You got it in a nutshell, Fire Nero [biggrin]
Read Peter Spann’s chapter “The Endless Deposit” in his book “$10 Million Property Portfolio in 10 Years.”
Cheers
GregHi Fire,
That is pretty much right but it all comes down to your goal, strategy and plan. I am Just begining my investing career but my advice is to read as much as you can and sit down and set some goals (think big), choose a strategy and plan how you will acheive your goal. But the most important thing is to TAKE ACTION!!!! you can always change your plan and strategy later.All the best
Originally posted by free@35:Hi Fire, That is pretty much right but it all comes down to your goal, strategy and plan. I am Just begining my investing career but my advice is to read as much as you can and sit down and set some goals (think big), choose a strategy and plan how you will acheive your goal. But the most important thing is to TAKE ACTION!!!! you can always change your plan and strategy later. All the best
Bravo, Free!!
A man/woman after my own heart!
Think big, and put it in writing. All the guru’s recommend it, so few actually take the time to do it. Cheers
GregAnd don’t forget to keep saving your cash as you can plough this into your homeloan, gaining equity faster or, if an IP, put all of your cash into a 100% offset account, save interest, and then withdraw and use as a deposit on the next property.
Terryw
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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