I have just finished reading (0-130 properties….) and found it to be very interesting. So i went and bought myself a house. it was $300,000. I borrowed $270,000 and im renting the house for $250 a week. I am a bit confused because it is going to be hard paying the mortgage. I need help. Any help from anyone is gratly appreciated.
Sounds like you should have done the numbers first before you bought it as you may well be coughing up a bit every month. At least you took action and you’ll learn and do better next time.
What about selling it on a lease/option?
Or how about seeing what depreciation you can get and an ITWV done to vary you tax taken out of your pay and you might just be able to pay for it.
Later………
OK, so you read the book and went out and bought a house. Just like that? Don’t get me wrong that takes courage (or too much spare cash).
For me one of the most basic messages in the book was the need for the investment property to be able to give you a positive cash return (ie the rental income not only needs to cover the mortgage repayments and other expenses associated with owning an investment property but there must be some left over to be your income from the investment).
Although there have been many debates about the validity of the 11 second solution, it still gives a good indication of whether or not a property will give you a positive return. Using the 11 second solution as a guide, if you paid 300k for your property then you want 600p/w rent from it.
Keep with the forum and you will soon get the idea. Good luck with your future investing and congratulations on taking action rather than shelving the book and just dreaming about investing.
Cheers
SonjaJust remember that time heals all mistakes in real estate.
Hold onto it. Make sure your loan is the best one and soon the value and rent will increase.
In the meantime reflect on what you have learnt and plan your next one with those lessons in mind.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
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.
k_nasser
obviously your finance was approved on the information you gave the funder, as such, you are able to meet the repayments with the assistance of the rental stream.
the deal is negatively geared which i trust suits your current financial situation. if you have purchased in an appropriate appreciating area, your net position will shortly support you, your cash position may require topping up – accordingly this is a taxation issue best left to you and your accountant.
by the way, what exactly did you find interesting in ‘the book?’
cheers
brahms
If you don’t ask, the answer is no!!
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