Hi There,
I am looking forward to becoming a regular on this forum and learning lots. Ive got lots of questions too
My husband & I are about to sell our house & go back to renting so we can spilt our profit & use 1/3 to pay out our bad debt, 1/3 to put a deposit on our first investment property & 1/3 to put into a savings or off set account.
My first question is
Is it better to go cheaper for your first investment property? Buy something that only needs us to contribute say $50 a week towards it to cover everything? Something more neutrally geared? And should we set our loan up as P&I or I only and have an offset account?
We are a one income family. And still want a lifestyle & some savings put aside for living in a rental. We also dont want to max ourselves out straight away as our goal is to get 2 properties asap.
Hello Wealthy,
Looking at your post, I think you already know the answer to your question. I think you would be best going for a cheap positively geared property. Something that will provide you a small amount of cash back each week but wont have large amounts of capital growth (mainly because you will only find these properties in regional suburbs).
Regards,
Adam
Personally i wouldnt be putting in a one third deposit down on an investment property when placing the funds in an offset account will have the same interest savings.
Remember you may want access to the savings for personal expenditure or another deposit on a future PPOR and placing it in an offset account gives you the best of both worlds.
Richard Taylor | Australia's leading private lender
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