Hi all, just a quick question. I’m 26 y.o, $50,000 pa salary, $30,000 personal loan debt, $15,000 cash ready-to-go for deposit and zero properties purchased to date.
My question is:1) Should i try and get into REI now with my $15,000 cash but have the $30,000 debt restrict my borrowings, or
2) Wait the 3 years it’ll take me to become debt-free in which time i’ll be able to get my $15,000 up to $30,000 and be in a much better position?
Any thoughts would be appreciated.
What would you be planning on spending now if you were to buy?
Depending on the figures involved the advice could be either or even a compromise.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.85%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
If your on $50k a year, why would it take 3 years to reduce your loan.
secondly, personal loans usually have far greater interest rates. Apply for a home loan and the bank will add the personal loan to your home loan with a much lower interst rate of approx. 4-5%
regards,
geo.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
Hi Mbeu
sorry to be hard on you but why do you have debt of 30K? it looks like you are living way beyond your means, maybe you need to learn to live a cheaper lifestyle and learn how to manage money better. You have way too much bad debt.
If this is the reason for the 30k debt then any more debt will just get you in more trouble.
I’d like you to pay off the debt and get a handle on your finances.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
I am in total agreemen with Westan. My first priority would be to remove that personal loan first. You don’t really need this hanging over your head especially if you are going to buy a property. The repayments on that will be enough to keep you working away like a weasle. Think of a scenario of you losing your $50K pa job, while having a mortgage and a $30K debt to service. Very scary. Unless you are in the Police Service or other similar job with relative job security.
That’s my opinion anyway.
Here is the thing guys.
In some cases I advise people to pay the minimum off their loan…why?
Most lenders need a demonstration of saving ability. So to pay out all debts and then save may well add another 6-12 months to the process and in some markets could be costly.
So whilst in principle I agree to rid yourself of bad debt it isn’t always the wisest option.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.85%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Simon
A good point.
i agree i some markets the best thing is just get a hold of some property, But i don’t think that is the case right now.
who knows I may be wrong, but the market may be even more atrtractive in 12 months time ???
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
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