Hey guys hope u are all well. I need some advice on what is the best plan attack to achieve our goals.
Im 25 just got enganged and i have moved out of home with my finance.
Our goals are:
1) To own 4 Investment properties
2) To own 1 Commerical Property
3) to have a no Mortgage on our place of principal.What We have at the moment: Both properties are under my name only
– One investment property in Hoppers crossing
– Loan Amount $215,000 -Repayments- $220 a week – Rent = $270 a week = Postive
– The house we live in has a Loan Amount 90K – The house is valued at $380,000 (we are planning to live in here for 3 years)
– We have no other debts and we have a total combined income of 140k
– Current Savings are 0 but i have a plan to save 30k within a year (This will be achived)I want to purhcase another IP by the end of the year. What steps would you take and why? and what time line would you make in order to achieve all these goals?
thanks every one and have a great long weekend
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Johan,
Do you live in Point Cook by any chance?
Johann
You say you are planning to live in the current property for 3 Years.
After this time what will you do – buy another PPOR ?
If you are not sure then i would be looking to switch the loan to an interest only loan immediately and linking it to a 100% offset A/c.
Last thing you want to do is pay down the debt only to decide to rent the property you move elsewhere and realise that the interest on the new PPOR loan will not be Tax deductible.
Flexibility is the key to success and whilst it may not be possible to plan every stage of yoru investing career you want to ensure that your lending facilities can be adapted at minor cost to suit your circumstances both now and in the future.
Richard Taylor | Australia's leading private lender
You can achieve everything if you do some handwork dear.Good luck
Regards,
Jimmy Norton
Unique Gift Ideas Inc
Saint James Ave.
Boston, MA, 02116YoungInvestor wrote:Johan,Do you live in Point Cook by any chance?
Hey i live in Deer Park but i work in real estate around Point cook and Werribee
what about you?Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Qlds007 wrote:JohannYou say you are planning to live in the current property for 3 Years.
After this time what will you do – buy another PPOR ?
If you are not sure then i would be looking to switch the loan to an interest only loan immediately and linking it to a 100% offset A/c.
Last thing you want to do is pay down the debt only to decide to rent the property you move elsewhere and realise that the interest on the new PPOR loan will not be Tax deductible.
Flexibility is the key to success and whilst it may not be possible to plan every stage of yoru investing career you want to ensure that your lending facilities can be adapted at minor cost to suit your circumstances both now and in the future.
After 3 years we will be buying another PPOR. My broker is in the proccess of chaning our loan to intrest only and set to a offset account in a few weeks. We will not be paying out this loan at all. We will borrow against it when it times to by some thing else or another PPOR.
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Dont use it as security for the new PPOR otherwise you will have a further case of Cross Collateralising the 2 loans.
Both loans need to be standalone.
Suprised the broker set up a PPOR without Offset A/c or infact not being IO.
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Dont use it as security for the new PPOR otherwise you will have a further case of Cross Collateralising the 2 loans.Both loans need to be standalone.
Suprised the broker set up a PPOR without Offset A/c or infact not being IO.
Hi Richard, Both loans will be standalone. The reason why we didnt have IO at the start was becasue we owned a very large amount on it so we wanted to reduce the loan so we could live a bit more comfortable. But know where in the position to change the loan.
Exiciting times ahead
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Having the loan high and IO with 100% offset is exactly the same risk as having it as P & I from day 1.
Richard Taylor | Australia's leading private lender
Just curios you say you have no other debt and you have no savings and you are going to save $30k within a year and your combined income is $140k
What do you do with $140k each year? thats $2,700 a week
why don't you try save triple what you had in mind.
you will be suprised on how little you can live onkeiko wrote:Just curios you say you have no other debt and you have no savings and you are going to save $30k within a year and your combined income is $140kWhat do you do with $140k each year? thats $2,700 a week
why don't you try save triple what you had in mind.
you will be suprised on how little you can live onHi, Thats 140k Gross not Net.
Plus we are paying a mortagee on the home with live in.
I am aiming for 30 but once i reach 30 il aim for more thats how i work!!!Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
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