Thanks Foundation and Paul.
I agree. Being on the cautious side I don’t really like the idea of ammassing huge debt, then rely on tenants, stable interest rates and good capital growth to see profit in 20 years.
I think I will go the path Paul is planning. Buy a cheap (<100k) apartment. Get FHOG. LIve in it for the 12 months as PPOR then move back into home. Rent it out and use both my income and tenant rent to pay off debt. Once settled use as basis for loan on another and so forth.
I know this isn’t going to make millions following this path but if I can get around 5-6 properties by retirement I will be pretty bloody happy. Especially if I own them outright.
I do see the path Mortgage Hunter is talking about but I am the sort of bloke who hates more than $100 debt on the credit card. I don’t think I want to be in serious debt for most of my working life if I can help it.
One question though, I am looking at an apartment in a holiday complex. It is self contained and live in. Body Corp is normal for whats available (approx $3000pa). Do these sort of properties follow regular capital growth paths or completely different?
Cheers
Marlow