I am looking at buying my first home for a place of residence and also seeking capital appreciation for the future when my circumstances change and I have a need to change my housing requirements. I am currently single and trying to identify the best strategy available to pay off the mortgage in the shortest time possible. I have savings which amount to approximately 30% equity of the overall purchase price.I am looking at purchasing a small lot of land in the West of Sydney and building a house. This is part of a development which is just in stage 1 of 5. History of past projects by this developer and similar developers indicate substantial capital appreciation as each stage progresses.
I would like to attain further equity in this property sooner rather than later and commence developing a property portfolio which produces a positive cash flow, enabling me to be financially independant.
I would appreciate any worthwhile advice as I am currently trying to educate myself concerning real estate and how to manage my financial affairs better.
Is my best option to rent the property out and contribute extra mortage repayments to get ahead?
Mate, I reckon it depends on your situation. If youre living at home and thats no dramas, then you can make the most of it and rent your property for as long as you can and either use your excess funds to pay the loan quicker or to finance a second property.
But if you need a place to live then personally, its great to live there, pay off as much as you can and in time, use that as well as the capital appreciation to borrw against, to fund investment property.
If you rent it out, and you need to pay rent elsewhere, it kind of defeats the purpose I reckon.Thank you for taking the time to reply to me. I am actually living at home ,so I suppose that certainly helps make things a bit easier finance wise.
Mate, I reckon it depends on your situation. If youre living at home and thats no dramas, then you can make the most of it and rent your property for as long as you can and either use your excess funds to pay the loan quicker or to finance a second property.
But if you need a place to live then personally, its great to live there, pay off as much as you can and in time, use that as well as the capital appreciation to borrw against, to fund investment property.
If you rent it out, and you need to pay rent elsewhere, it kind of defeats the purpose I reckon.
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