Hi Guys, I need some guidance on the next step, I am only 23 currently own a property in Melbourne western suburbs.
I only own about 156k on the property. By the end of the year I will have saved around 25k to 30k.
My loan is currently locked for another two more years as a fixed home loan with ING my current interest rate is a low rate of 6.25% (I can only put 10K more a year in extra repayments)
Should I out lay some of my funds into my current home loan and try to pay it off as quick as I can and with remaining funds invest in another venture?
Such as a block of land & maybe build a couple of units of it in the long term future?Shares?
A other investment property?
Thanks for all your help guys
Best RegardsJohann Psaila
DHL GLOBAL FORWARDINGOCEAN CUSTOMS DEPARTMENT
DDI: 03 9272-9201
EMAIL: [email protected]Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hi Johann,
I personally cleared all my personal debt b4 i started to invest.
If i had my time again i think i wouldnt wait to clear debt. It can take some time to pay off a house.
I think you can get yourself in a comfortable financial position b4 you start and not be pouring all your income into personal debt items.
Or you can do Dave Bradley did and sell your PPoR and rent then start investing. This is not a bad idea for short term especially if you have some equity in you home you can use.As for building units. Do you have expirience in building?
If not i would do a Buy/Reno Sell to start off with.Hope this helps
John
Hi Johann.
Agree with John – in the sense that you need to be comfortable with the commitments. It's great to own multiple properties, but if they cripple you financially, it aint worth it.
However, Im a big believer in turning money into money. 20% equity in property can get you off and running with another property. You dont need to look big, start with an affordable budget and move at your own pace. Personally, I thing that waiting to pay off personal debt stunts your potential. I take my hat off to anyone your age who's in the market, look what you've accomplished at just 23, a few tough years can make a world of difference later in life… trust me!
Rob
Hi Johann
I agree with both Rob and John. To me it's all about leverage and the return you can get on the money you have available (cash or equity). Do the sums – if you have $30K in savings you can probably borrow foro another investment property and the capital growth of two would more than likely outweigh the capital growth from the one you have. Of course, you need to weigh up your cashflow position but do the math and look at likely outcomes then make your decision.
Hope that helps.
Hi Guys,
Thanks for all yuor advice been great help
cheers
JohannJpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
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