i have about 20.000 in equity and about 5000 in savings can some one tell me if it is worth buying a 2 bed room unit for about 120.000 and can i do it with what i have as i am 42 years old and feel time for investing for me is running out
It's possible depending on your borrowing capacity. Would need to look at your income/liability situation to provide an accurate response.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Wouldn't say that time is running out for you. You have 20 years plus before the retirement age.
Can get a lot done in that time. Some people make millions in that time period.
You should ask yourself what the purpose of the unit would be.
is it to rent and hold long term?
what the area like?
What is the expected rental
What is the expected holding costs including bills, water, insurance, repairs, strata fees, set up cost on trusts or structures
20k equity assumes you already have another property as your PPOR. How did you caluculate your equity.
Lots of questions to answer along with Jamie's critical questions.
Have you considered investing in property via SMSF (Self Managed Super Fund)? Either way, it is still possible to get 100% lend on certain properties.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Rod1 wrote:i have about 20.000 in equity and about 5000 in savings can some one tell me if it is worth buying a 2 bed room unit for about 120.000 and can i do it with what i have as i am 42 years old and feel time for investing for me is running outWhat is the current LVR on the property you have equity in as this will be an important factor.
Yield will be a consideration as well.
Read a stat today that by 2050 the average Aussie male will live to 92. Plenty of time yet as you are less than half way
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
a) how are you calculating "equity" and
b) different lenders may use different valuers so it could turn out that your equity is more than you think
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi Rod
Received your PM and responded.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
long term,cbd,175pw.repaires i can do my self.To be honest i don't expect it to increase in value a great deal it is for sale at 120.000 and i think i will be lucky to make 40k profit by the time i would sell< maybe 20 years> i am hopeing that with the rent plus a bit more from me that i can increase my ability to buy something else. Like i said i am new to all this and would welcome any help or advise
Rod1 wrote:To be honest i don't expect it to increase in value a great deal it is for sale at 120.000 and i think i will be lucky to make 40k profit by the time i would sell< maybe 20 years>After 20 years I think it would be worth a lot more in dollar terms due to inflation. I understand what you mean, but you must also understand that even if the property doesn't appreciate in value, the value of the dollars will depreciate, meaning a higher property price (not necessarily value). Basically the real estate isn't becoming worth more, the dollar is becoming worth less, as the currency supply is inflated.
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