Hi everyone
i was wondering if anyone can give me some advice on whether we should buy our own home with FHOG or buy an investment property? Basically, my partner and myself have saved up about $7000 and obviously want to take advantage of the FHOG, but on 2nd thoughts, instead of paying approx $1500 per mth on mortgage repayments, maybe getting the IP would be more comfortable to pay off. We are renting and paying $700 a mth. Which way should we go that would be more financially comfortable to meet the repayments each mth?
thanks much for your advice
SanWhy not do both – live in it long enough to satisfy the FHOG and then rent it out.
I would invest first into something with really good +CF that will help pay the rent for you whilst you invest.
kind Regards,
Geo.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
Geo,
What do you do for a living?….you come up with some good advice!
Kind regards,
Smart CookieT (02) 9501-2531
F (02) 9501-2541
W http://www.smartcookie.com.auGeo,
what do you suggest as an idea for the +cashflow?
i mean, does this mean i should buy into shares or start up some kind of cash mgmt portfolio??thanks in advance
regards
SanOriginally posted by Smart Cookie:Geo,
What do you do for a living?….you come up with some good advice!
Honestly, if you see there is any good advice I give, it’s just a reflection of the advice I have received from the outstanding forumites on this forum.
I tend to also go to meetings and seminars every week to know what’s out there and I meet like-minded investors.
So I cannot take credit for it – its all come from other investors rich in knowledge and books, CD’s they developed. Credit also goes to Mr McKnight.
kind regards,
Geo.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
Originally posted by san:Geo,
what do you suggest as an idea for the +cashflow?
i mean, does this mean i should buy into shares or start up some kind of cash mgmt portfolio??Hi San,
I would suggest property only because I have had bad experiences with cash management funds. Shares are also good but more risky. I would suggest investing into property, thenm into shares on the side to help bring in that extra cashflow.
Say you have the following scenario as an investment:
Investment property = $80k
Deposit = $16k (20%)
Loan Repayments = $373.33 p/m (IO at 7%)
Rental = $200 p/w = $800 p/m
Now the above is totally basic on the figures – you still need to include rates and other expenses which are along the way but just from observing the above, you can purchase an investment that will deliver in excess of $400 p/m +CF into your pocket which can go towards helping pay the rent, thus meaning you’re really only renting for around $300 a month – not $700.
Like I said however, you still need to include the other costs such as Legal fees, Stamp Duty (NA in NZ), Loan fees, Title Fees, Body Corporate etc. But as I always say, be creative and anything is possible. You could also make your loan repayments $319.46 by obtaining a honeymoon rate of 5.99% for the first year – extra savings for you. Be creative in your deals.
Hope this helps.
Kind Regards,
George.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
Geo,
thanks so much for your advice. you have helped me immensely to understand all this. you know, i’ve only just started looking into property and don’t know a thing about investing, when i found this website, i started reading thru the msgs and it seems so interesting. i know i still have heaps to learn and lots of research to do. but i am determined to start the ball rolling….soon!
thanks again
kind regards
san [exhappy]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
