All Topics / Help Needed! / BEST TIME TO BUY SECOND PROPERTY?

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of mcubedmcubed
    Member
    @mcubed
    Join Date: 2004
    Post Count: 33
    February 11, 2007 - 1:43 pm

    Hi Everyone,
    I bought my first property at the end of last year in Brisbane (from there) and pay about $1000-$1500 per fornight on repayments, minimum per month is $1100. I really really keen to get another one this year, be it a house or another unit. I am moving to WA at the end of the week to take up a site position at a mine site. I will be on a package with the only expense being food . My salary is going to be $65k.
    Please let me know if it is reasonable for me to think that I can do it this year! and buy another property, probably in Bris, but happy to get advise on elsewhere.
    All advice welcomed!
    Cheers

    Mcubed

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    February 11, 2007 - 2:18 pm

    MC

    Congratulations on your first purchase and I am sure you will be able to purchase your next IP sooner than you think.

    I am not going to recommend any areas in Brissie as I am slightly biased but would make a comment on your loan structure.

    From your post you appear to be making additional loan repayments into your mortgage and this is not always a good thing especially given the tax treatment. If I was you i would utilise an offset account with an interest only loan and put the additional repayments and all your income into this savings account.

    You never know when you may need the fudns down the track and if you were to redraw them the interest would not be tax deductible.

    Also you may one day decide to purchase a PPOR and will want to access a deposit.

    Ok good luck and let us know what you decide.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner. Ph: 07 3720 1888
    [email protected]
    Looking for life cover – We Guarantee to beat any quote you have in writing.

    Richard Taylor | Australia's leading private lender

    Profile photo of DinahDinah
    Member
    @dinah
    Join Date: 2004
    Post Count: 30
    February 11, 2007 - 4:17 pm

    Hi Mcubed

    I take it your first property is a buy/rent? If this is the case then why not let the rent pay the mortgage and don’t pay any extra off? As for purchasing another property with your new position – I would’t think any financial institution would have a problem lending you more money from the details you have given.
    All the best
    Dinah[hair2]

    Profile photo of adissonadisson
    Participant
    @adisson
    Join Date: 2007
    Post Count: 1
    February 11, 2007 - 6:21 pm

    Congratulations on your new home.

    Maybe you can consider a different approach for your next home. Get an interest only loan for the purchase of the property which would give you plenty of breating space. Just a suggestion, I’ll let you do the research. ;-)

    Profile photo of mcubedmcubed
    Member
    @mcubed
    Join Date: 2004
    Post Count: 33
    February 13, 2007 - 3:27 am

    Thanks everyone for ur replies,

    So basically I could just let the rent that is coming in for my unit, just use that to pay off the unit and possibly a bit more?

    and save the rest of my wage for a deposit on something else?

    Yes, the next loan I get will be interest only as would cost me too much to change my already loan over to that.
    also next loan will be fixed :-( sure lost out this first time, oh well
    u learn , only young

    thanks again

Viewing 5 posts - 1 through 5 (of 5 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.