Forum Replies Created
How about paying it down as much as possible now…..
……but not close the account.And when it's time to move to the new PPOR, remortgage this IP (the first PPOR) with interest only payments.
Does that make sense?I see, thanks for that.
I like what Jamie has to say.
Especially SAVE LIKE CRAZY
I also think start small and do what is affordable and achievable.
You wouldn't want to have a negative first experience.Dear brmiau,
I am 30.
My current plan is to pay off my PPOR mortgage within 13 months.
But also in the next 13 months, I am looking at buying +ve cash flow in USA and doing some capital development back here in Australia.If you had asked me 4 years ago (when I bought the house) to buy an investment property I think I would've died just thinking about both the mortgage on my house plus the debt on those investment properties. It was just too much for me.
In some ways I wish I had gotten into investing earlier……..
However at the same time, I'm really relieved that I am now about to pay off my mortgage and can concentrate on putting all my money towards investing now.It's a more conservative approach I guess.
I think this was said in one of the earlier replies to you.
It all depends on your RISK tolerance.Qlds007 wrote:As Derek has mentioned if there is any possibility that you may rent the place out and buy another PPOR DO NOT pay the loan down but structure in a manner that the loan is interest only with 100% offset account.Be smart and maximise the tax deductions you can claim rather than pay Tax on your rent.
Doesnt mean you cannot ever pay the loan off but at least you have the option and in the meantime have the cash oncall.
Cheers
Yours in Finance
I'm in somewhat of a similar situation to brmiau.
At the moment , looking at paying our (PPOR) mortgage off as quick as possible.
We will prob live here another 3 years or so and then prob need to look for a bigger place bc of family.
Unsure whether at that point we would then turn this current PPOR into an investment property or sell it to buy this "bigger place".I have just re financed to be able to draw a LOC.
We were advised to pay down our PPOR mortgage and use the LOC for investing.Can you just clarify why you are saying not to pay off the mortgage if you are possibly moving in the future?
Hey Brmiau.
How to send you a private inbox message?
KimHi Michael,
I can't say that it has not crossed my mind to refinance my parents' home and do some investing that way (afterall, I know another couple who have done that and did VERY well for themselves purchasing over 50+ properties in 5 years and are now both financially free).
However, I just couldn't bring myself to entertain that option any further, the risk is too high for my parents who are heading towards retirement….and given my lack of investing knowledge – it's just a bad combination for now.
Right now, I'm focussing on something small for now and being a little more conservative I guess.
From what I can tell when you are starting out, you need to build some capital.
So my current plan is to do some in USA (for +ve cash flow) and will be doing some developments back here in Australia for capital.
I haven't actually physically done any purchasing as yet…..but I do think the strategy and goal setting is imperative and time should be spent on getting those solid first.Cheers, K
petejac1 wrote:Just me personally, in hindsight I should have set it up with the single member being my Discretionary trust here, but ultimately it is all coming back to me anyway. As it took nearly 8 months to get my ITIN I just wanted something set up over there to get started. You set an LLC in the States for the Protection so I felt I didn't then need the extra protection back here as well. I am sure there will be replies saying this is the best but that is the way I did it.Why did you say that in hindsight you should've set it up with the single member being your Australian discretionary trust?
I don't have any IP here in A'lia and to set up a Trust here costs $$$.
But would I in the long run be better off setting up a Trust here to be the member of the LLC over in the USA?
Hope this makes sense!
Thanks.Positive Aussie wrote:Hi Rosa, I completely agree with you when you say you are looking for just good investment, does NOT matter if other people are running it. After all, in compare to the amount of time overseas property due diligence takes, it is much wiser to get some professional help. Even after paying their fee, it will be a worth while to do it. I am looking for Florida property. I have selected few buyers agents so far like (1) MyUSAproperty.com (2) Cash for gold.com (3) PropertyShopUSA.com But I haven't contacted them, will call them tomorrow. I know, few buyer agents will read this post as well; and will try to convince me with all types of data (about their companies and their "preferred" states), but I like to request them that I will do my own research which company is most suitable for me. Thanks.I'm interested to know which one you ended up going with?
And what made the decision for you?Are either of you looking at buying direct property over the the US in the near future?
Thanks so much Angel
That actually really does help
And today I reflected on my goal which is = +ve cash flow
That being said, I have done some "rough maths" and found that USA is def. the place for +ve cash flow, not Vic right now……And thanks for sharing your outlook even on something like age.
You have made me realise that since I'm 30, I might as well take the "risk" of buying something in the States rather than hesitating…..
I'm not getting younger either……WOW JacM, you have an amazing way of explaining things.
Really appreciate the way you have communicated. It really helps.Well I'm a bit of a novice myself, having only bought my own home (and no current investment properties).
I bought my home pre-Steve McKnight books and properly educating myself.
Whilst I have no regrets in buying my own home (yes, there is an emotional sentiment, and it's about making a house a home), something I would do differently is perhaps bought a house that was not as "nice and perfect" (freshly painted walls, downlight, newly rennovated kitchen etc.) and therefore it would've been cheaper for me to own my own home and I could've had more money earlier for investing.
Also I would've bought my first home with a view towards it being a future investment property.The home I have bought we paid an extra premium for b/c it has a lot of land and the area is a "family" area……
but had I had more of an investment orientated focus…..I would've bought a place to live in but also with a view towards renting it out in the future as I progress on.Hope this makes sense Joel.
Thanks everyone for you feedback. Appreciate it.
And it's also very encouraging to hear that all of you have an optimistic approach to this idea.
Any other recommendations would also be appreciated.Thanks for your help all!
Income $65k/yr gross
House paid off $300kYes this whole idea of positive cash flow is a new concept to me.
i never knew you could buy a property where not only did the tenants pay off the mortgage, but you got cash flow from it too!!!Thanks for your help all!
Income $65k/yr gross
House paid off $300kYes this whole idea of positive cash flow is a new concept to me.
i never knew you could buy a property where not only did the tenants pay off the mortgage, but you got cash flow from it too!!!
