Hey every one
I want to improve my overvall cash flow and to keep investing on assests
Where do i stand at the moment
1) Assests: my home – worth 420k
2) liabilties: loan on home 109k
lease on car – 10k
expenses: home loan repayment: $650 per month
Lease on car: $388 per month
living expenses: $400 per month
income: $4200 per month from my jobI also save some money in one account and i also any left over go towards the home
if u were in my sistuation what would u do? Would you invest or would you pay off all the debt first
ps my fiance she and i own a lotto store and she earns a wage to where both 27i
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
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Hello,
A. With the lease on the car – If you are paying a high interest rate (eg. 12-20%) then it may be worth your time borrowing against your home loan to transfer this debt onto a lower interest rate (5-7%). But this depends if you have the will power to then pay that off.
B. If your figures are accurate and you earn $4,200/month and only need to spend $1,500/month in living expenses then you are in a very good position. You have over $2,500/month that you can use to invest.
Have you considered investing in positive cash flow property? This is property that brings you an income above all of the expenses.
It is possible that you could borrow against the equity in your home for a deposit on a new investment property.
Over time rents will most likely increase, then you will find yourself in a position where you have a lot of money coming in from the properties and your expenses are quite low.
Is this something that you would consider doing?
Ryan McLean
CashFlow Investorps. You may like this blog post I wrote Positive Geared Properties – Are They A Good Investment?
Ryan McLean | On Property
http://onproperty.com.au
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