Hello Everyone
I have been gaining a lot of knowledge through the forums & really appreciate your honesty in providing advice and sharing valuable experience. I have developed a great passion in property Investing since a while and looking forward to pursue this as a way to achieve Financial independence.
My aim for now is to kick start my Property Investing portfolio. Nearly 2 years back I had bought a 475000 house (nearly 2 acres land) which is approximately worth 560000. I have got an equity of about 150000. Could I please get an advice on how to best use this equity to buy 1 or 2 property as a start. Also, I will be getting about 80000 in cash in 6 months time (thanks to my lovely parents) which I wish to invest it wisely
too.Looking at my situation, could you please advice how to best use my equity or any other approach to kick start my Investment portfolio & invest the money wisely!!
Thanks to everyone for reading this & big thanks & wishes to everyone in advance for taking your time to reply.
Hi Hsingh,
I would first try to gain more knowledge through reading property investment books.
The library has many.
Margaret Lomas has books well worth reading.
Good luck.
Frosty
Hi Hsingh
Firstly welcome to the forum and I hope you enjoy your time with us.
Remember equity and the amount you can borrow against this are 2 different figures.
Lenders will generally only go to 80% without incurring mortgage insurance and 90% possibly 95% with the payment of an insurance premium.Firstly you to determine how to structure these new loans.
With regards to the amount of $80000 gift you are likely to use do not use this as deposit on an investment loan where you still have non tax deductible borrowings on your principal place of residence.
There are a couple of structures you can use to maximise the interest savings and tax advantages when these monies are received.
With regards to what you should buy i guess this depends on your serviceability and whether you are after cash flow or capital growth or a combination of both.
My suggestion would be to approach an mortgage broker firstly to review your current situation and then look to put into place a structure to enable you to move forward when the time comes.
Flexibility is the key issue here so ensure that the person you approach is qualified to offer such advice and is a like minded investor himself.
Richard Taylor | Australia's leading private lender
hsingh10
In 6 months when you get your $80,000 put it in your offset account ( assuming you have one ).
Then start looking for IP's. They will be cheaper and you will have saved thousands.. in the mean time keep reading and doing your maths.
too.
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