G'day People!!
Please excuse if my query sounds really basic. I got no idea of PI, but highly motivated to get into it ASAP.
My situation:
Young couple in early 30's, Combined income of $160,000 – 170,000 p.a. , Own a house- bought 6 months back for approx $500,000. We can put extra $1000 per month ($12,000 p.a.) for an investment property.
How can we invest the extra money we have every month into an investment property. I understand solutions are specific to a situation. Any general guide on how can we start into IP business?
Thanks,
SG
Hi SG
If you have some equity in your existing property, you could use that (in a few ways) as deposit for the new investment property. Borrow as much as you can for the investment as this is deductible pay IO keeping your repayments as low as possible. Any extra funds should go off your home loan first. You can also get a tax variation done to reduce the amount of tax you pay making the investment not too painful.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Sit down with your partner and work out a plan, property investing is just a vehicle to help you realise your goals and dreams. Get a few books on PI and start "sculpting" out a plan based on what you want to achive, then go buy some more property.
Work out how much you need to live on, subtract that from your net income, and the balance divided by the interest rate and that will give you the amount to borrow to buy ip's, you will also have the net income from the ip's to help you pay off even more borrowings and then it just goes on from there, make more, borrow more, buy more, make more, borrow more, buy more, etc,etc,etc.
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