Hi
I am interested in property investment, with the long term aim of reducing debt, and would like to know where to start..if i can. Firstly, we have a family home we built about 3y ago, which i estimate we have 120-150K equity, which we still owe 190K. We have one income 60k and some centrelink payments 14k. We also have a large family (6 kids)so all the money that doesn’t go to mortgage and bills goes into feeding/clothing/schooling the kids, so there is NO money left at the end of the week.
Would like to know if there is a way out using our equity and not using precious disposable income.
We live in Murray Bridge, a medium sized rural town in SA, which is growing, and where property prices are rising substantially.
Any ideas?It could be possible to access the equity in your own home to raise the deposit for investment property. You very much sound as though you would then need to buy cash flow positive property. The equity would provide the deposit to get into the investment and the investment would help boost your weekly income if you bought right – there would be no need to dip into your disposable income – although sounds like you don’t have a lot/if any disposable income with six kids to manage!!
Castle Dreamer
(You’ll never go wrong if you never go anywhere – have a go!”
“with the long term aim of reducing debt,”
basically to buy IPS you’d be increasing your debt and therefore risk. So I am wondering if you mean reduce consumer debt, or what? But yeah. castle dreamer is correct.
Don’t even look at anything under 10 percent yield, to cover you if interest rates rise some more.
cheers-
miniHi
We in a similar situation – no cash – 3 kids – 2 teritary, 1 high school, medically disabled husband and I am primary carer so can only work 3-4 days a fortnight – but we have equity!
we are currently organising finance through a broker. we were dubious at the time as we thought we would not get anything – that’s what the bank said. It sounds weird when put in writing but here goes
1 you use your equity in your home and ivestments to fund properties,
2 the income from investment properties goes into you home morgage with your normal morgage payments
3 expenses are paid out of increasing investment loan/account
4.you only pay the interest on your investment
account
5. once you have paid of you home loan (one investment property can reduce home loan to 8 -10 years more reduces further)you can either continue making morgage payments but into investment account or alternative investments
Steve divides his into 3 -have you read 1-130 properties see resouse site on forum and steve’s section
6. remember as you are excelerating your morgage
payments and you have capital growth in you home, these add to speed equity in your home to eable purchasing more propertythese figures are based on -ve geared property which we are avoiding so the effects on your home morgage/equity should be enhanced
we were sceptical after talking to the banks but there are quite a few brokers offerring free service to appraise your situation – yes there is a cost but in our case it far out weighs not doing it – we should have done it 4 years ago and stopped(kissed good bye 1 mill+ capital gains in homes we were going to purchase)
check finance form as we did and it was given the go ahead also – it cost nothing to get the figures from a broker – maybe someone could suggest some for you to contact in your area
GOOD LUCK!
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