Hi everyone!,
I have just joined this site as i am just about to start investing in property. I have some ideas of where i want to buy and i think i can make it a neutral geared investment but i am unsure if it’s a good time to start because of interest rate rate rises coming up, does anyone have a better insight into this than myself?My girlfriend and have recently bought a home and are looking at using the equity in the current property to fund the investment.
Welcome!
Many people use equity to fund their next purchases.
All the best,
Simon Macks
Finance Broker
[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.
Hi, anytime is a good time to invest as long as you have stratergies in place to protect yourself and certainly I would be having a bit of a buffer in place for when interest rates rise.
Goodluck!collie
is the “buyer beware” book a good one to get?
did it help alot?Nice to have you on board.
Remember you can always lock any new Investment property purchase on on a fixed rate of interest and take out the worries of interest rates increases.
Let us now if you want a few example rates and i would be happy to pass them on to you.
Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap service.Richard Taylor | Australia's leading private lender
Hi terrabyte
The Buyer Beware package is actually a book and 2 CDs which I have just bought. We are purchasing our first property in NZ and would not be without Buyer Beware for anything – the templates alone are worth their weight in gold.
Good luck
jelHi Terrabyte!
I would first increase your education and knowledge. Learn about strategies, tax structures, returns and yields, and know what you want.
I would also consider attending one of Steve’s courses, such as the MasterClass. I did my first on Sunday and learnt so much about what I need to know in order to become an investor.
That way, regardless of interest rates going up or down of staying flat, I can apply strategies to make profit.
Learn, Love, Strive. Make a difference!
If now is not a good time to invest because of interest rates, then when is a good time?
If you start now before any further rises that would be better than starting after no?
You’ll find that the terms people like to bandy about (and this goes for any field of study) are more intimidating than what they actually mean.
eg:
“make sure you know about strategies.”
Sounds technical and difficult and like you need some special knowledge taht only learned people know. What it actually means is: “make sure you know what you’re going to do with your property.” Like are you going to buy a neutral geared property and keep it until it goes up enough in value to buy another one? Or are you going to renovate and sell? Or are you going to get it positive geared and use the income to replace work income?
“have strategies in place to protect yourself.”
As in don’t borrow so much that you have trouble when the rates do go up.“tax structures”
As in keep track of your expenses and interest for investment properties because you can claim them against taxable income.“returns and yields”
As in the money you get from rent and selling the property versus the money spent to get the property.Any new field of study appears bigger than it is (and oddly smaller at the same time). Just take a bite and start chewing. People less clever have been successful (on purpose) so you should have no trouble if you try.
Surrey.
Hi Terrabyte,
No one can accurately predict if interest rates will rise or fall, speculation & hindsight do not go hand in hand,
For instance, if a potential rate rise has the ability to cause financial hardship or severely effect your investment holdings then you may want to consider fixed rates or have a portion of your loans fixed.There is a graph on my web site under interest rate trends, http://www.mobilemortgagemarket.com.au
Click on the variable and the 2 & 5 year fixed buttons to view the average rates from April 04 to May 05
I am not advocating fixed or variable rates, when all is said and done it’s a matter of personal choice/circumstance, most of the time it will depend on your SANF (sleep at night factor)Regarding equity in your PPR,
Ensure you structure the loan correctly, keep the deductible debt (investment portion) and non-deductible debt (PPR portion) separate, you can achieve this via a split loan. Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Hi Terrabyte
I’m new too and was lucky enough to attend steve’s masterclass in Sydney on Sunday. He’s running another in October, and at other venues during the year. It was really good value, try to get to one if you can.
Good luck!Hi Terrabyte,
When was the best time to invest? Yesterday.
When is the next best time? Today.
“Whoever watches the wind will not plant; whoever looks at the clouds will not reap.” – King Solomon
Dan Lewis
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