Hi, this is my first time here, I’ve just purchased Steve’s book and I thought I might post a question.
My fiance and I are just into the final steps of buying our first house. It belongs to my father and although the Real Estate agent said he could get about $129,000 for it, he’s selling it to us for $93,000. We have just over 20% deposit(including 1st home owners grant) and are thinking of using the equity to buy an investment house by the end of the year.
My questions is this…[
]Is this a good idea? Are there any better alternatives available to us? The property market where we live is hot and we’re hungry for this.
Thanks
Since no one else has responded I’ll give you my 2c worth.
What your asking is not realy our place to answer. There are risks involved with IP investing. It realy comes down to how much homework you have done and your financial position. The equity is great but a bank will want to know if you can service a loan or not.
On a more personal note I would recomend settling into your new home first and after six months or so take the leap and invest. Buying a house and moving in can be very stressfull for a couple starting out. Don’t take on too much to quick. PI investing is not going anywhere so take your time.
It’s great to hear that your hungry to get into property. Keep that flame burning by reading this forum and learning as much as you can befor you do anything.
Good luck in all your endeavours.
You will always miss 100% of the shots you don’t take!
Are you asking if buying a property in a hot area for 72% of the market value is a good idea?
It puts you into an excellent position to start purchasing additional IPs – finance wise.
Cheers
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Sounds like good advice. You say the house was valued at $120,000 and your local property market is running hot. Can you tell me what area that is. I like you have just bought Steves book. I have been doing alot of searching on the net to find properties in this price range. Not many.
Cheers[
]Hi delboy,
The town I’m referring to is Ipswich, QLD. About 45km SW of Brisbane. I’m getting it for the low price because I’m lucky my father wants to help my fiance and I get started(and he’s not too concerned with price). We are already living in it and not sure if we should go straight into an investment or whether other ideas we overlooked exist.
Still, houses here are increasing in value rather quickly.
The future belongs to those who believe in the beauty of their dreams. – Eleanor Roosevelt
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]The topic ‘What would you do in our position?’ is closed to new replies.
