All Topics / General Property / Starting out in property investment- $30k cash -what to do?

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  • Profile photo of radioactivemanradioactiveman
    Member
    @radioactiveman
    Join Date: 2008
    Post Count: 1
    July 21, 2010 - 9:16 am

    Hi all,
     I have come into an inheritance of $30.
    I would like to get started in property investment. cash flow is pretty tight, we are on one income- owe $150K on the mortgage. So cant afford anything that is heavily negatively geared.
    I am in Melbourne and the only proprty that I can find under $250,000 seems to be student only or serviced apartments.
    So do I ;
    A) buy student apartment- 1 bed or studio. I have concerns about capital growth and market saturation. Anyone have any advice with this?

    B) do some fancy work with a deposit. Get a 105% loan for a $300K property (2br apartment) in a decent suburb and put the $30K cash back into our mortgage. Creative solutions and ideas most welcome!!

    Profile photo of zeablezeable
    Member
    @zeable
    Join Date: 2009
    Post Count: 27
    July 23, 2010 - 3:04 am

    Hi,
    If your cash flow is pretty tight, I would believe it would be risky for you to jump into the housing market. Why not invest the 30k in the sharemarket or other means?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 23, 2010 - 4:09 am

    Probably best to pay off your non-deductible mortgage first. If you want to invest, then reborrow it and set up a new loan account. This will save you tax.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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