- qweqweqweParticipant@luca-321Join Date: 2015Post Count: 2
I am new to the forum and investment property. Started renting out 5 years ago so I thought was the right time to start thinking to buy a property. My budget is really low, let`s say around $350,000. I am looking for an IP in Melbourne and repay the loan with the rent. I need to borrow around $270,000 which will make $1780/month @ 25 years.
I`ll be renting out another place.
Do you reckon it is a good plan? 25 years look a bit too much to me but it is the only way to make it. There is also the chance I
ll be relocating overseas within 5 years so thats another reason to buy an IP.
Thank you all,
LucaJess PeletierParticipant@jaylouJoin Date: 2009Post Count: 12
25 years is fine for a loan term – I’d even stretch it out to 30 years if you can. This lowers your repayments and lets you use the saved cash for other investments. You could also think about using interest only payments – this allows you to save more into your offset account, and have easy access to cash if you want to buy a home/move OS etc.
Speak to a good broker about your options, they’ll be able to walk you through it all and help you figure out what’s best for you based on your goals and what you hope to achieve. :)
Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
- This reply was modified 5 years, 11 months ago by Jess Peletier.
No i think it is a good idea but as long as you are happy with Melbourne as your investment destination.
We are finding the inner city properties of both Sydney & Melbourne are getting rather overheated and therefore are putting more of our forum clients into SE Qld which still has a lot of room left in it for growth and appreciation.
I think your budget is more than sufficient and you should be able to find something that meets your criteria.
Yours in FinanceqweqweqweParticipant@luca-321Join Date: 2015Post Count: 2
Thanks Jess & Richard,
LucaHoward MoralesParticipant@howardm673Join Date: 2015Post Count: 16