All Topics / Help Needed! / Beginner Advice !!!

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  • Profile photo of Bradles CBradles C
    Participant
    @bradles-c
    Join Date: 2004
    Post Count: 52
    September 14, 2004 - 1:54 am

    Hi Guys !

    I am an absolute beginner in Property Investing ! After reading Steve’s book I am fired up to purchase my first IP but need some advice to get me started !

    I am currently building a house in a new golfing estate in Victoria. I have taken out a loan for $400,000. I will be selling the property around September next year and will have approximately $250,000 cash after I sell (based on current prices in the area).

    Question : Should I wait until I sell my house in September 2005 before I purchase an investment property or should I borrow an extra $100,000 now and purchase one in the next few months ? (the maximum amount I can borrow is $500,000).

    Any advice would be greatly appreciated !

    Thanks heaps [biggrin]

    Brad

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544
    September 14, 2004 - 3:05 am

    Hi Bradles,

    My counsel is that you sit down and consider what your long term plans are. It seems to me that you are all fired up but with no-where to go.

    Once you have worked out what your investment plans are, what you life plans are, family situation, looming issues (new child, kids to uni – that sort of thing) then you will have an idea of what is feasible and what needs to be doen to achieve your goals.

    Based on the limited information provided it woould seem that the ‘golf course’ house could well be the launching pad for future investments. Given you have projected equity of $250k in the house you may want to consider retaining the house long term and utilising this in a line of credt structure for subsequent investments.

    As to whether or not you should borrow the additional $100K now or wait – that will really depend on what your plans are.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

    Profile photo of Bradles CBradles C
    Participant
    @bradles-c
    Join Date: 2004
    Post Count: 52
    September 14, 2004 - 3:35 am

    Thanks for the advice Derek !

    I am 25 years old and like the idea of early retirement !

    No plans for kids in the next 5 years and hoping to obtain some positive cashflow to eventually replace my current job (within the next 10 years).

    I want to start investing ASAP but am not sure whether borrowing $500,000 at this stage would be over commiting in an uncertain market ?

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