All Topics / Help Needed! / Young Married Couple after some advice

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  • Profile photo of davidm1davidm1
    Join Date: 2009
    Post Count: 1

    First post on the forums!!!!!

    My situation is as follows

    Bought our first home in Richmond NSW 2 years ago after being feed up with giving my money away in rent at age 23,

    Occupations:- Construction Foreman/Builder and my wife is a sales rep combined income 170k gross

    Bought the home for $299,000.00. Getting smashed by RHG with the interest rates 6.1%p.a atm want to refianance, but the exit fees hurts to get out, we have 12 months left

    Current Market Value $ 350- 360k House has been renovated by me!!! Weekend Hobby

    Remaining balance on  Loan 275k

    Minimal Weekly Repayment $445

    Current Weekly Repayment $1200 comfortable at this amount

    Cash Savings $100-$150 per week.

    Both have company cars (all expenses included)

    No dependants!!!!  First child planned 2011

    Ok now what do we do, im juggling between repaying down our mortgage for another 2 years at $1200 per week or looking at the opportunity in the near future, at a investment property 200k or there abouts in budget. Any advice is appreciated……

    Profile photo of Lisa XLisa X
    Join Date: 2009
    Post Count: 4

    Sounds like you have added a good amount of value to your property by doing those renovations. Don't forget when it comes time to buy that investment property it might be a good idea to refinance your loan (once you are clear of the fixed rate in 12mths time) so that the property can be revalued at the higher amount, this way you will have more equity and you will be able to borrow this equity for your investment property deposit. This means you wont need a deposit and you can start to build your property portfolio.

    I recommend reading the May issue of Australian Property Investor magazine as there are a couple of articles about people who have done this successfully and it shows a breakdown on the figures and how they did this. If nothing else it will provide you with some inspiration. If they can do it anyone can!

    I have just started reading API a few months ago and I think it's great for someone new to the property investing game.


    Profile photo of LalibellaLalibella
    Join Date: 2007
    Post Count: 116

    Hey David, welcome to the forum.
    Sounds like your in a great position for your age, well done to you both.
    While 6.1% isn't super competitive, you could be locked in at 10%.  Truckloads of people are paying more or as much on all or part of their loan. (me included)
    You have loads of options. You could redraw some equity to fund a deposit,  to buy a IP.  What area where you thinking about for 200K?
    If you haven't spoken to a Mortgage Broker yet, arrange a meeting. They are a wealth of info and have zillions of products available to them.
    Hope your leaving enough cash to enjoy life and each other. Sorry, its the grey hair coming through.
    Sounds like your really focused, good luck.

    Profile photo of ErikHErikH
    Join Date: 2007
    Post Count: 118

    David, sounds like you have set yourself up for success, well done.

    I think that the next 12-24 months could present very good buying opportunities, but be careful not you extend yourself too much as I foresee a rapid increase in interest rates once we’re out of this mess and inflation catches up. For now, I would concentrate on paying off teh mortgage, develop a strategy/plan (e.g. cashflow +ve, growth, renovate), think about the holding structure (personal name, joint, trust etc), educate yourself about proeprty investing and tax and start looking. Once you have finished the 12 months on you loan refinance and buy. If you find a great deal sooner than 12 months, just negotiate an extended settlement to align with your refinancing…

    Good luck!

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