I am currently in the same situation as you.. trying to decide whether to buy an IP or a PPOR. I guess its all about personal choice and what you can and can’t hack. After discussing it with my other half, we have decided to stay living with my parents (as long as both of us can hack it []) and invest our savings into positvely cashflowed properties. We decided this so that while we are still young (I’m 22 and she’s 21) we can create the platform for our road to financial freedom… Good luck to you and make the decision that you will not regret.
Cheers,
Jay
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You must stay pOsitive
…then the cAsHfl0w will come!
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Who would you want to represent Australia in the “World Idol”? Personnally, i think if the winner was to go up against Kelly Clarkson and the guy who sings Unchained Melody, i think its Gareth Gates, then it would have to be Guy… Climb every mountain!!!! You go Guy! haha [][][]
Cheers,
Jay
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You must stay pOsitive
…then the cAsHfl0w will come!
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Great article Stuart. Being a newbie it has really opened my eyes to one of the many pitfalls of financing your investments. I have now even created a spreadsheet based on your article, which checks how a property will impact on a person’s net income position and therefore their borrowing capacity. Keep up the good work…
Cheers,
Jay
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You must stay pOsitive
…then the cAsHfl0w will come!
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My guess is you probably did the same thing as me after reading the book.. got all excited and went on the internet to look for positive cashflow property. Well it seems that to find these positive cashflow deals you need to put in the hard yards in terms of research and due diligence… My advice to you would be to read through some of the posts in this forum and you will pick up tid bits of information that can help you get started on your journey… Nothing can be handed to you on a plate… Its up to you to make the whole hearted effort…
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Cheers,
Jay
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You must stay pOsitive
…then the cAsHfl0w will come!
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A credit card may be easy, but don’t you incur the high interest charges on the amount as soon as you make the cash advance withdrawal.. Maybe you have a family member that may be willing to lend you the money… Or borrow from people and pay them a rate of interest for using their funds, lets say 10-20% pa (which is higher than a bank) interest only monthly payments until you have the cash to pay back the $4500. Am i making sense… I dont even understand myself sometimes…[]
Cheers,
Jay
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You must stay pOsitive
…then the cAsHfl0w will come!
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Hello Rocket.. This was Steve’s response on that issue when interviewed by Today Tonight… Hope this helps..
Question: Which is better, an interest only loan or a principal and interest loan?
Steve McKnight: My grandfather used to say no-one ever went broke owning too little, and I’ve taken that advice. For me, principal and interest loans are a better idea. They might lower your cash flow return but this is because you are repaying debt, which is never a bad thing. You can always re-borrow it later.
The only time I do interest only loans is on the commercial property I own, and that’s because the bank will only offer me a ten year loan term. If I did a 10 year principal and interest loan, it would be largely negative cash flow because of the requirement to pay back the debt. That’s why I do interest only.
Cheers,
Jay
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You must stay pOsitive
…then the cAsHfl0w will come!
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Thanks for all the responses… point taken… i must put in the effort (ie go see the properties no matter how far they are) in order to get the results… [^]
Cheers,
Jay
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You must stay pOsitive
…then the cAsHfl0w will come!
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