- MrLibraMember@mrlibraJoin Date: 2011Post Count: 1
Hello all, I have $150k in bank.
I have no debt, no bad credit and i earn $60k.
I am single, 37.
I do not own any property but would like to stop renting now and buy a 2 BR house for around $400k-500k (i.e. $250k-350k loan) somewhere
down along South East/Mornington Peninsula, will go as far as Frankston.
OR is there a cleverer way of doing things i.e. not put all my cash into one property?
Perhaps buy a smaller apartment to live in and invest in something else as well?
Any input appreciated, I really have no idea what is best way to approach.
MrLibraJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Hi Mr Libra
It all depends on your own risk profile and what you’re aiming to achieve.
Purchasing the property you mentioned will cause you to hit a serviceabiliy wall very quickly – limiting the ability to purchase additional properties in the future.
If you wanted to build a portfolio, that $150k could be spread over multiple properties achieving cash-flow neutral/positive results. Which means they won’t cost you too much (if anything to hold) which is an important factor when considering your income.