Hi all,
i’ve been listed on the site for a couple of weeks and have been reading and watching.
I have recently paid off my mortgage. House currently valued at about 450k and am in the process of buying outright a unit valued at 175k plus closure costs. I am fortunate to have come into a large amount of money and will still have about 130k to use. The investment property will return about 8k p.a as one of my children and her partner will be living in it. The 130k and inv. property are in a family trust structure. I am hoping to have both the shares and house return about 20k pa. Is this realistic? Some of this will be used to add $$ to our personal income but i hope 10 -12k can be reinvested in shares or property.Is it possible to leverage the value of shares and property to increase the total income through this trust structure and any suggestions as to how i might achieve this. Mod. risk aversion in my family.
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Any suggestions greatly appreciated as we are just getting started.
RechercheHello Recherche.
I know it seems great to have property fully paid off but all investment wisdom I’ve read and discussed with IP friends points to maintaining managable levels of debt. After all, if a property is fully paid off there is less of your windall in your pocket and less tax breaks come June 30.
Personally I would pay down the debt to a level where it was CF+ AFTER TAX giving you more money in your hand and making someone else’s money pay your remaining mortgage. Use the larger amount of money in your hand to buy more IPs.
This is just my opinion but have a read of some literature on the subject. I found Dolf De Roos’ ‘Real Estate Riches’ to be a great help early on. If you can get your hands on it (ISBN 0971165203) it’s an easy, informative read with lots of tips for your situation.
Anyone else care to toss in their 2 cents?
Art
‘Great spirits have always encountered violent opposition from mediocre minds.’ – Albert Einstein
such a shame to have all that equity lazing around not working harder for you,have a look in to the share market and writing covered calls there are broking houses averaging 3% a month and better on your portfolio’s and they can margin on your money by 50% to give you more exposure.
For those who are risk adverse you are able to simply cover yourself with insurance against any downturn in the market.[thumbsupanim]Paul Meese
Onyx Finance
[email protected]
0412 850 820Thanks for the repli[suave2]es. I’ll get hold of that book and have a read, while keeping an eye on the opportuites floating around.
Good luck to you all.Recherche[suave3]
“fist post”
WTF?
I thought I’d stumbled across something sinister and sexually deviant.
…and felt it was my duty to extinguish and destroy such filth.
Christian values AHOY…….!
Live, Learn and GrowLifexperience
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